Bitcoin Mining Manufacturer Canaan May Seek an IPO in Hong Kong or the US
Securities investors may be able to get more exposure to the bitcoin market soon as one of the leading mining producers, Canaan, is thinking about going public. Everyday people may soon be able to mine cryptocurrency right on their smart TVs, if the company has its way.
Canaan Rules out IPO on Chinese Stock Exchanges?
Canaan Creative Co. Ltd, the Chinese company behind the Avalon lineup of hardware equipment which produces ASIC mining chips and rigs, is reportedly considering launching an initial public offering (IPO) in Hong Kong or the US markets.
The company has faced difficulties with getting its stocks listed on mainland Chinese marketplace in the past and now feels that the process in its home country is just too long. Co-chairman Jianping Kong said: “We … prefer listing outside mainland China as we are in a global business.” Canaan also claims that the harsh approach toward bitcoin taken by the government has nothing to do with its decision to look abroad. Kong added that they may later pursue a secondary listing in China by issuing depository receipts.
Besides a potential IPO, the company which reportedly brought in over 1 billion yuan in revenues last year, has further expansion plans. N.G. Zhang, Canaan founder and CEO, revealed that he employs around 200 in Beijing and Hangzhou, mostly in R&D, and is looking to hire more.
Canaan might use its chip development know-how and capabilities to create an unexpected new lineup of products. These can include home appliances such television sets that mine cryptocurrencies “while you sleep.” Other developments include chips to power artificial intelligence (AI) applications and of course new hardware for mining other cryptocurrencies such as litecoin.
The manufacturer is expected to benefit from the Chinese government’s initiative to promote local technology companies to rid its economy of its dependence on foreign suppliers at a time of growing international tensions and talk of trade wars. “As an integrated circuit company, we are supported by government policies,” Kong commented.
How would stock investors react to a bitcoin mining hardware manufacturer IPO? Share your thoughts in the comments section below.
Images courtesy of Shutterstock.
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