On behalf of Innosilicon Inc, the proud real owner of A1 BTC ASIC and A2 LTC ASIC, I would like to make it clear that we are very shocked to learn that Bitmine shamelessly pointed their finger to us for their business failure due to a series of their own engineering mishaps and reckless business risk taking. Innosilicon has done nothing wrong here and we continue to deliver our quality product even till this date. We have full evidence (email exchanges, legal contract, shipping record, business plans, apology letters etc) that Bitmine management tried to use Innosilicon as scapegoat to mislead their customers for their failure to fulfill their customer orders. We would like to provide full evidence to assist those who filed lawsuit against Bitmine. Our contact info is listed below and let us suit Bitmine liars. The world deserves to know the truth.


1. A1 chip came out on time and working. Chips were fully delivered at normal 28nm foundry yield to Bitmine with Bitmine CEO email acknowledgement and appreciation. Full amount of ASIC were delivered and tested with clear grade marking and there is no excuse for Bitmine not to deliver their mining machines. It is Bitmine who failed to turn working A1 into good miners to customers. In fact, they received our 1st batch of over 50K A1 chips at cost in early January of 2014 yet failed to produce working miners till April, at that time, BTC market was very hot and miners were in huge demand yet they failed to capitalize. Even then, Bitmine A1 Miner system was reported still not stable which is the biggest reason why they missed market windows. In these two critical months they received another over big batch of low price chips ahead of anyone which were enough to fulfill their customer miner orders. The only reason of their failure to produce miners were their system PCB design and DCDC design flaws. This is due to their poor engineering issues, thus wasted a lot of money by making tons of failed circuit boards, not due to our A1 chip issue. They are the one who is responsible for the failure of customer delivery. In the meantime, another Chinese miner manufacturer Dragon Miner came in after them and started to deliver working miners in late Feb and quickly ramped up very high volume with A1 directly purchasing from us with much higher cost month after month. On the other hand, Bitmine sat with the piles of working A1 chips and could not produce working miners. Yet they shamelessly blamed on all their failure on Innosilicon!
This really sounds like a one sides explanation of what happened and I think that neither Bitmine / Innosilicon is innocent here. Bitmine claimed to have a contract with Innosilicon. They claimed that Innosilicon agreed to not sell the chips for less than a certain price. Innosilicon was definitely selling the A1 chips for much less than Bitcoin's "cost." to their partners in China. I find it very strange that Innosilicon had a perfectly working PCB design back in January/February of 2014 and Bitmine did not. Just because Innosilicon's marketing person is claiming that they 100% own the intellectual property (IP) for the A1 chip does not show anyone any shred of proof. Bitmine claimed all along that they owned the rights to the chip and Innosilicon was not allowed to sell the chips to anyone except them. There is absolutely nothing Bitmine could do because the laws in China are so weak when it comes to stolen IP. Think about it! Even Apple cannot protect themselves in China and they are the most valuable tech company in the world. How could Bitmine ever have any chance to sue Innosilicon in China. This is a joke!

2. Innosilicon never violated any agreement therefore Bitmine knew they could not even think of legal battle. The A1 project became joint investment in Oct 2013 when they could not fund the project by following the previous contract funding terms. So they asked Innosilicon to step in to fund half of the mask fee with a contract amendment where it stated that Innosilicon have the full rights to sell the chips in the open market and Bitmine does not have the exclusive rights of the ASIC. If you read the amendment, you will see that why they absolutely don't deserve the exclusive rights for A1 chip. They were not forced to enter the agreement amendment, they should thank us for the investment to save the whole project. Again Mr. Inno-cent-silicon Sir...This argument is BULLSHIT >>> SHOW US THE AGREEMENT if you are so innocent and truthful!!!


3. The reason why Bitmine had to apologize to Innosilicon with offical letter is that they themselves later violated the contract amendment by falsely declaring to the whole community that Bitmine own the exclusive rights of A1 and threaten lawsuit against anyone who buy A1 Chip from Innosilicon directly. Obviously this was totally false and the breach of our amendment and they had to apologize or facing lawsuit. Again please show us the apology or the agreement you speak of. I bet it does not exist. Just show us the part that speaks about Innosilicon having the right to sell the A1 chips on the open market or the ownership and who the IP belonged to. Again I bet it does not exist.


4. We have every evidence to show that Innosilicon developed and own 100% of the A1 ASIC intellectual property and our company is a world renown IP company with excellent ASIC design skills. Innosilicon not only independently developed 28nm A1 BTC ASIC, it also quickly developed A2 LTC ASIC. Both quickly became No. 1 in the market. Our business is all over the world and enjoy stellar reputation with zero complaint from anyone. Protecting IP rights is of paramount importance to our company and we never had any design IP from Bitmine. Bitmine was previously only 2 person company who had zero chip design experience. Can you believe that Bitmine could develop most advanced ASIC with their background? We stated in the contract that any design contribution from each company belongs to each company. Bitmine has zero actual ASIC design contribution in the chip. All they did was to provide us their system input and output files for us to simulate our design.Seems very strange because before Bitmine got involved with Innosilicon they had an excellent reputation and sold and DELIVERED on many Avalon miners in 2013. Innosilicon is claiming that Bitmine did provide their system input and output files used for simulation but then saying that they provided nothing to the project. What about the fact that Bitcoin provided you the MONEY TO FUND THE PROJECT? I know that Bitcoin paid $millions to Innosilicon and in the end Innosilicon was the only party who made out. Many individuals lost A LOT OF MONEY, many families lost money and some lives were destroyed because of what happened. Bitmine made MILLIONS from the A1 chips and funded the A2 chips with that money and then made even many more MILLIONS. For Innosilicon to say they feel sorry for all the people that lost money is insulting!!! You contributed to destroying the Bitcoin market by flooding cheap A1 chips on the market and put a lot of your competition out of business. Now you happen to have the A2 chip which is the only chip making an ROI right now. That seems pretty convenient.


5. If you ask us, we have a lot to say why Bitmine failed  to keep their promise to us and to their customers. 1st, Bitmine used the pre-order money from customers to build/purchase their own mining farms (tried one in Swissland and one in Iceland) and conducted risky bitcoin trading, in both cases, they lost big money. A1 would have been a lot more successful if they did their job right. I'd to say that the real problem for Bitmine is their weak management on risk and poor technical execution in a market  that is full of competitors and time to market is of great importance. They had 2 months to prepare their miner design before our ASIC came out yet they did a terrible job in that after 4 months, their miner still don't work right and customers were all angry and  they used us as excuses.  I have many facts documented that how they failed so many times before producing a working miners. They made several big mistakes in rushing their production and wasted a lot of materials and chips and made us very very upset. We delivered chips marked with grades according to contract and they knew it. To this date, they still did not pay for some agreed chip shipment fees and we had to cover their unpaid shipment fees. Again, I doubt that either Bitmine or Innosilicon is innocent here. It is easy to make claims without showing any evidence at all.


We are saddened by Bitmine's bankruptcy and failure to fulfill their customer promise. We are shocked that Bitmine management used baseless accusation as excuses to default their refund on their customers and cover up their business risk takig and engineering mistakes. We have every evidence to show that Innosilicon has faithfully followed our contract and contract amendment and it is Bitmine that grossly mishandled their miner design and business in a very unprofessional manner. It is very obvious that A1 chip has been a huge success, on time and with quality , yet A1 miners from Bitmine did not ship on time and with quality to their customers 12 months after. Isn't it clear that who did their job right, who did it wrong?


We reserve every rights to file lawsuit against Bitmine management on spreading baseless rumors to damage Innosilicon reputation. Should anyone need more information and legal help, our legal department is happy to assist.

Best regards,
Joey Jiang
Innosilicon Marketing Director
sales@innosilicon.com