Canaan, A Bitcoin Mining Hardware Maker Files for $1 Billion IPO

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The world’s second-largest bitcoin mining hardware maker, Canaan Creative has just been involved in the submission of their application for a Hong Kong initial public offering. This venture could raise close to $1 billion. This is according to the people who are knowledgeable about the matter.

The Chinese based organization might start their trading ventures in July. This is in accordance with one of the people who requested not to be identified since the piece of information is private.

The Canaan listing, therefore, might just be the first Hong Kong-based IPO emanating from the cryptocurrency sector. The organization has around 155 shares in the entire global market from computer equipment and also the bitcoin-based mining chips as compared to the Chinese based competitor Bitmain. Sanford C and Bernstein & Co reported in February.

Canaan was founded in 2013 and is involved in the sale of computer equipment under “Avalon” brand. Therefore, they have very fast chips which are customized and win the crypto coins due to their ability to solve the complex math’s problems. The organization’s hardware in most cases ends up in a local housing which contains the mining pools dependent on inexpensive electricity. This is according to Jianping Kong in an interview in April.

The organization made an announcement in 2017 that it would be involved in the development of the dedicated chips which are used in artificial intelligence programs.

As per the current news and information, final decisions have not yet been made and the IPO details might change. Canaan co-chairman, Kong, did not give any comments in regard to the IPO preparation details.

Canaan was in the preparation in 201 and wanted to be listed in China National Exquisites Exchange and Quotations which is an over the counter market called the New Third Board. This was before it could pursue a Hong Kong-based IPO.

On the other hand, in 2016, Shandong Luyitong Intelligent Electric Plc which is devoted to the manufacture of electrical equipment wanted to buy Canaan. However, the deal was not possible because of the various uncertainties especially in the china securities environment and also the various regulation policies.

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