After the Bitcoin bash now comes the time for cryptocurrency IPO. According to the media reports, The Chinese bitcoin hardware maker Canaan Creative has decided to go public and has filed papers for IPO with Hong Kong Stock Exchange on 15th this month. Canaan Creative is the the world’s second-largest maker of bitcoin mining rigs. The Chinese company is reportedly seeking to raise up to $1 billion. This is expected to be the world’s biggest crypto-related initial public offering (IPO) till now.
Bitcoin mining rigs maker going for IPO
Morgan Stanley, Deutsche Bank AG, Credit Suisse Group AG and CMB International Capital Ltd are expected to be bankers for the said IPO. The Hangzhou based equipment manufacturing company had revenue of 1.3 billion yuan ($205 million) last year and net income surged more than sixfold to 361 million yuan. Listing of Canaan would be the first IPO of any Hong Kong based compnay from the cryptocurrency industry. The company having the 2nd standing with about 15 percent of the global market for bitcoin mining rigs and computer hardware, following its Chinese rival Bitmain, as per a Sanford C. Bernstein & Co. report said.
Canaan, founded in 2013, sells computer equipment under the “Avalon” brand with fast, customized chips that win digital coins by solving complex math problems. Initially the Avalon machine was the first bitcoin-mining machine sold to the individual users which has replaced graphic cards which were used earlier to mine the cryptocurrency, which was less efficient. China is producing the most popular bitcoin mining hardware around the world.
Canaan sold a total of around 294,523 hardware sets, which has tripled the figures with respect to the figures of previous agar. The company reported that the US and Sweden were its biggest overseas markets last year. In 2017, Avalon mining machines had made available for 19.5% of the world’s processing power for mining bitcoin, the filing said, citing a report from research firm Frost & Sullivan.
Company is located in the northwest area of Beijing outside the 5th Ring road in the Silicon Valley Bright City. Company is roughly 45-90 minutes from the airport depending on traffic.
Earlier company has announced that it is under the development phase of its artificial intelligence applications. The entry of the cryptocurrency industry in the public issue market is seems to be encouraging for the newly established crypto start-ups and also motivating the crypto investors.