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Chinese Cryptocurrency Mining Company Plans to File IPO Outside of China

Ashour Iesho | Apr 08, 2018 | 19:00

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Canaan Creative, one of the world’s leading cryptocurrency mining equipment manufacturer is planning to launch an IPO.

A Bright Future for Cryptocurrency Mining

They say a rising tide lifts all boats, and as the interest in cryptocurrencies continues to grow, so too does the interest in cryptocurrency mining. As a result, GPU and ASIC equipment manufacturers have reported a drastic rise in demand. Following this trend, Hangzhou-based cryptocurrency mining equipment manufacturer Canaan Creative reported a surge in 2017 for their products.

Even when the global cryptocurrency market experienced a crash, most cryptocurrency miners are still optimistic about the future of the market. Canaan is one of the leading manufacturers of cryptocurrency mining equipment and currently supplies around a quarter of ASIC miners. The Chinese company is currently planning to launch an IPO, but what has really caught some observers by surprise is the company’s plans to file outside of China.

The Canaan IPO

In 2016, the cryptocurrency miner-manufacturer tried to get listed in China through a $485 million back-door listing but was unable to do so due to regulatory issues. The company is currently planning to launch an IPO outside of mainland China. Hong Kong and the United States have both been floated as possible countries were the IPO could take place. The co-chairman of Canaan, Jianping Kong, sums up the company’s decision:

We … prefer listing outside mainland China as we are in a global business.

Kong insists that Canaan’s decision to launch an IPO outside of China has nothing to do with the country’s recent bans on cryptocurrency mining and trading operations, but rather because the listing process takes too long.

He states:

As an integrated circuit company, we are supported by government policies.

It is worth noting that even though Canaan is facing tough competition from the US-based Bitfury and Beijing-based Bitmain cryptocurrency mining firms, it reported a revenue of more than 1 billion yuan in 2017. The company is also planning to diversify its stable of products and begin offering home appliances that are run by blockchain computing power that can passively mine cryptocurrencies. The manufacturer is planning to create its own AI chips and specific mining equipment that mines altcoins like Litecoin.

What are your thoughts on Canaan’s plan to launch an IPO outside of China? Do you think that government regulation may hinder the IPO launch? Let us know in the comments below!

 Images courtesy of Canaan Creative, VCG