Categories LATEST, Technology

Bitcoin mining chipmaker Canaan is gearing up for $1-billion IPO

The widespread adoption of dedicated computer hardware for bitcoin mining in recent years has brought a revolutionary change to cryptocurrency trading, while creating a new industry that thrives on the technology. Underscoring the growing acceptance of digital currencies in the financial world, Chinese bitcoin mining technology company Canaan Creative has filed for a colossal initial public offering (IPO).

Canaan, the second biggest manufacturer of bitcoin mining hardware, pursues to raise $1 billion through the IPO, according to the application filed by the company in the Hong Kong Stock Exchange.

It is Canaan’s second outing in the equity market, the first being in 2017 when it put forward the listing application in the National Equities Exchange and Quotations, a secondary market in China. Being home to the top three manufacturers of digital currency mining hardware – Bitmain, Canaan, and Zhejiang Ebang – China is set to top the list of countries with most IPOs involving crypto technology firms.

Also read: 3 crypto-related securities that are benefiting from the Bitcoin surge

The Beijing-headquartered Canaan apparently bets on the phenomenal increase in the price of bitcoin, though prices crumbled this year, which is currently trending at multi-week highs and once again moving closer to the $10,000-mark.

If everything goes as planned, Canaan will start trading in July and become the first company related to the blockchain and crypto industry to list in the Hong Kong stock exchange. The company’s fast-paced growth and the consistent upturn in quarterly earnings justify its decision to go public.

Canaan’s market share is expanding rapidly, powered entirely by its high-speed crypto mining chip, sold under the brand name Avalon, which consumes less electricity. Currently, the leading players in the sector are struggling to cater to the growing demand for mining machines.

Canaan, the second biggest manufacturer of bitcoin mining hardware, pursues to raise $1 billion through the IPO

Meanwhile, China-based Zhejiang Ebang Communication, the third largest provider of bitcoin mining gear and a direct competitor to Canaan, is also planning to file for IPO in Hong Kong, according to sources. Before starting the procedures for listing on the Hong Kong stock exchange, lured by the easier listing norms there, the company delisted from the Chinese secondary market New Third Board earlier this year.

Though there is an increasing appetite among blockchain and crypto technology companies to go public, the cautious stance adopted by major stock exchanges continues to be a deterrent for them. While lack of transparency and regulatory constraints restrict digital currencies from entering mainstream financial markets, smaller stock exchanges have started opening their doors to them.

Most Popular

Earnings Preview: What to look for when Broadcom (AVGO) reports Q1 results

Broadcom, Inc. (NASDAQ: AVGO) will be releasing its first-quarter results next week. Over the years, the company constantly broadened its portfolio beyond semiconductors to areas like enterprise software solutions, a

Here’s a look at Lowe’s (LOW) expectations for the near term and ahead

Shares of Lowe’s Companies, Inc. (NYSE: LOW) were up over 1% on Friday. The stock has gained 19% over the past three months. The home improvement retailer saw sales and

TJX Companies (TJX) Q4 2024 profit jumps on strong revenue growth

The TJX Companies, Inc. (NYSE: TJX) has reported a double-digit increase in net income for the fourth quarter of 2024 when the fashion retailer's net sales grew 13%. Fourth-quarter sales


Add Comment
Viewing Highlight