Bitcoin mining manufacturer files for $1 billion IPO in Hong Kong

16 May, 2018
by Conor Maloney
News
Bitcoin mining manufacturer files for $1 billion IPO in Hong Kong

Canaan Inc is the world's second largest Bitcoin mining hardware manufacturer after Bitmain, controlling 15% of the BTC mining hardware market.

The company, founded in 2013, filed for an IPO in mainland China two years ago - this fell through due to regulatory issues, leading the company to look further afield. If successful, Canaan will have the first ever Hong Kong cryptocurrency IPO.

The company has also applied for a listing to the Hong Kong stock exchange, and the listing is being sponsored by Morgan Stanley, CMB International Capital Ltd, Deutsche Bank AG, and Credit Suisse Group AG. According to Bloomberg the company intends to start trading in July. 

Canaan produces Avalon brand mining computers and Bitcoin ASIC chips, and is also exploring AI chips and other cryptocurrencies such as Litecoin, along with projects like household appliances that mine cryptocurrency while the owner sleeps (such as coin-mining televisions).

With 200 employees in Beijing and Hangzhou, most of the products ship to areas in China and Inner Mongolia where the low cost of electricity makes Bitcoin mining profitable, and those areas are home to the biggest mining operations in the world. China recently introduced tax breaks for microchip manufacturers to alleviate pressure from US trade standoffs and reduce dependency on foreign semiconductors. 

The tax breaks have seen a new surge of Chinese companies buying up foreign companies abroad. Canaan themselves were almost acquired by another company last year, but the deal fell through due to regulatory uncertainty - the climate is changing however, and this particular mining company seems to be destined to expand their operations and perhaps hold Hong Kong's first crypto IPO. 

Follow Chepicap now on TwitterTelegram and Facebook!

Read more about: Bitcoin (BTC)

Poll

At 70% market control, will Bitmain ever see a real competitor?

(43 votes)

Add a comment

Check out the latest news

You will be logged out and redirected to the homepage