Breaking News

Chinese ASIC Maker Seeks $1 Billion in IPO

Cryptocurrency NewsMay 16, 2018 02:00PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Chinese ASIC Maker Seeks $1 Billion in IPO

Canaan Creative, the biggest Bitcoin mining equipment manufacturer after Bitmain, filed for a public offering in Hong Kong on Tuesday.

The company, which controls 15% of the ASICs market, is seeking $1 billion in fundraising after a productive year that had it making revenues of over $200 million. This would be the first time a cryptocurrency-related venture has filed for an IPO in Hong Kong, and the biggest in the world in its niche, not counting ICOs.

Canaan Inc., the parent company based in the Cayman Islands, added that profits reached 361 million yuan (around $56 million) in its filing.

Canaan Creative’s miners have taken the mass mining market by storm, with its Avalon 841 producing up to 13 terahashes per second at 1,290 watts of power consumed per hour.

Its products are also sold to home customers, but such orders are not as numerous. Unlike Bitmain, it appears that Canaan doesn’t use the ASICs it sells, which makes it depend on revenue from sales for its profit.

The company has gotten proposals for acquisition in the past, and in particular one from Shandong Luyitong Intelligent Electric. The deal fell through, however, as “great uncertainties” about China’s regulatory future made Shandong Luyitong back away.

Right now, the market for ASIC mining computers stands at 7.3 billion yuan (~$1.14 billion). Analysts Frost & Sullivan projects this number to explode by three times once 2020 comes around.

However, ASIC mining has become somewhat of an arms race. Bitcoin’s mining profitability won’t always be as high and other cryptocurrencies aim to resist the entire mining rig movement.

If someone discovers how to build a mining rig that could adapt to changes in a blockchain’s algorithm, cryptocurrency developers are in trouble. Similarly, if the crypto market abandons the whole proof of work idea, ASIC manufacturers will go bankrupt.

Even after it managed to establish its IPO in a regulatory haven like Hong Kong, Canaan will continue to be challenged by the future development of each cryptocurrency its miners are made for.

So far, the company seems to be sticking with Bitcoin, leaving Bitmain to be more ambitious about conquering algorithms like Cryptonight, Ethash, and Equihash, all of which want nothing to do with ASICs.

This article appeared first on Cryptovest
Chinese ASIC Maker Seeks $1 Billion in IPO

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email