Canaan Creative Bitcoin Mining Hardware Vendor Prepares for 1 Billion USD IPO
The second largest vendor in China to launch the IPO in Hong Kong
The second leading Bitcoin mining hardware vendor in China, Canaan Creative is preparing for an Initial Public Offering (IPO). This is to take place in the Hong Kong Stock exchange, rather than having it in the United States. The news was published by South China Morning Post (SCMP) on 9th May 2018.
Canaan Creative will be the first company related to blockchain to be listed on the markets of Hong Kong.
Other sources remaining nameless for the time being mentioned SCMP that it plans to raise 1 billion USD through the IPO. It also states previous considerations to have it both on US and Hong Kong markets.
In 2016, Canaan had tried to list an IPO on yuan-denominated A-share market in China. However, that attempt failed after regulators contested the proposed valuation of the deal. Later in 2017, there was a re-attempt to list on “New Third Board” market in China, which also failed even though the market focuses startups and is less rigorously regulated.
Contribution of Canaan Creative to Bitcoin mining in China
This bitcoin mining hardware company is located in the eastern Chinese city of Hangzhou. The unaudited results of the firm for 2017 depicted 600 times increase in its yearly income of 410 million Yuan (approx. 64 million USD). As SCMP mentions, most of the clients of Canaan Creative are from China. The country has been a leader for some time in crypto mining due to the availability of low cost electricity in China.
China has the highest number of patent filings for blockchain technology out of all the countries in 2017. Furthermore, statistics show 50 to 70 percent of all Bitcoin mining was done by China in 2017.
There are plans by Chinese regulators and authorities to regulate and control the resources for bitcoin mining. These include restricting the power consumption usage for bitcoin mining in future. Nevertheless, Canaan Creative and Bitmain as leaders of the industry are still in operation. Bitmain has tried to overcome these limitations through the extension of operations to Canada, Singapore and Switzerland, and probably to the US too.