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The second largest Bitcoin mining equipment maker files for $1 Billion IPO

Canaan, the second largest Bitcoin mining equipment maker in the world has applied for listing on the Hong Kong stock exchange. This will make it the first crypto related company to trade on the Hong Kong exchange if the application is approved.

This offering is backed by CMB International Capital Ltd, Deutsche Bank AG, Credit Suisse and Morgan Stanley according to a preliminary prospectus seen on Tuesday. The filing doesn’t say how much the second largest Bitcoin mining equipment maker will seek but it’s believed it could raise about $1 Billion.

Bloomberg reports that the company aims to start trading on the Hong Kong exchange as soon as July according to a source who has knowledge of the matter but has asked not to be identified since the information is private.

Canaan is based in Hangzhou, an eastern Chinese city. Last year the company had a revenue of $205 million (1.3 billion yuan). Its net income rose more than sixfold to 361 million yuan according to the filing made on Tuesday.

If the listing is successful, it will be Hong Kong’s first IPO in the crypto industry. According to a February report released by Sanford C. Bernstein, $ Co. the company trails Bitmain, its Chinese rival in second place with 15% of the global bitcoin mining chips and computer equipment market share.

The company was founded back in 2013 and specializes in selling computer equipment under the “Avalon” brand.  During an April interview, Jianping Kong, Co-founder of the company said its chips end up in remote areas where large mining pools that depend on cheap electricity are housed.

Last year the company announced that it was developing dedicated chips that would be used for artificial intelligence applications.

So far the unidentified source says there are no final decisions that have been made about the offering and details could change.

If this listing is approved, do you think we could see more crypto related companies applying to be listed on major stock exchanges? Let us know n the comment section below.

coinmag

Basil is a Bitcoin and blockchain evangelist with several years of writing in the tech and finance industries. Having several years of freelance experience with leading cryptocurrency and tech related sites in past, he believes strongly in the revolutionary power of the blockchain technology. You can get in touch with Basil via twitter @basil_kimathi

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