Canaan Inc., China’s second-biggest maker of Bitcoin mining hardware reported that it is considering listing in the U.S.Crypto mining industry. As reported by Bloomberg the company has chosen U.S. instead of Hong Kong for the IPO.
Canaan picks up US markets after shelving plans for a Hong Kong IPO
Canaan Inc., China’s second-biggest maker of Bitcoin mining hardware, is considering listing in the U.S. after shelving plans for a Hong Kong initial public offering. According to the earlier reports, the Chinese company was targeting to raise about $1 billion, is discussing the possibility of selling shares in New York as soon as the first half, according to the people.
While Canaan had filed an application for a Hong Kong listing, amidst market slow down, Canaan did not proceed ahead and the application it lapsed in November. While there is no official confirmation from the company, a source close to the company sais the company is in an advanced stage of deliberation.
Beijing-based Canaan, founded in 2013, sells computer equipment under the “Avalon” brand with high power customized chips that are used by crypto miners to mine digital coins by solving complex numerical problems.
Canaan had reported a 1.31 billion yuan ($191 million) of revenue in 2017, according to a Hong Kong exchange filing in May. The Hong Kong application also stated that Morgan Stanley, Deutsche Bank AG, Credit Suisse Group AG, and CMB International Capital Ltd. were joint sponsors of Canaan’s proposed Hong Kong listing.
2018 has been a very bad year for cryptocurrencies in terms of market price. Bitcoin, the top crypto coin, has fallen nearly 80% percent after hitting a record high in December 2017, making it more difficult for crypto-related businesses to attract investors in stock-market. The dampness in crypto markets was felt in the stock market as well as Nvidia, another chip maker was declared the worst performer in the S&P 500 group of stocks for the last quarter of 2018.
Canaan competitors, Bitmain Technologies Holding Co., the largest maker of specialized mining chips for the industry, and smaller rival Ebang International Holdings Inc. also filed for Hong Kong IPOs last year. While Bitmain also had to mull its listing dreams due to falling crypto markets and issues of its own, there was no news of Ebang proceeding ahead either.
After a somber 2018, 2019 seems to have bought a ray of sunshine to the crypto mining industry. While things are still distant from being at best, this start is definitely encouraging.
Will Canaan IPO news bring in the much-needed positivity to the crypto mining industry? DO let us know your views on the same.