China’s second largest manufacturer of Bitcoin mining hardware, Canaan Inc, has plans of listing in the U.S. as the company’s plan for Hong Kong initial public offering is stagnated at present. In accordance to reports shared earlier, Canaan had a target of raising funds of about $1 billion and people suggest that the company is currently deliberating the options of selling shares in the city of New York before the first half of 2019.
Previously, Canaan submitted an application concerning listing in Hong Kong, but due to volatility in the market, the company decided to shelf the idea for the moment. However, the application lapsed in the month of November. According to a source, the company is in a progressive state of deliberation.
Found in the year 2013, Canaan sells computer equipment under the brand ‘Avalon’ and provides powerful and customised chips which are beneficial and used by crypto miners in order to mine digital coins by simplifying numerical problems. In 2017, According to a Hong Kong exchange filing in the month of May, Canaan reported total revenue of 1.31 billion yuan ($191 million). In accordance to the application concerning listing in Hong Kong, Morgan Stanley, Credit Suisse Group AG, Deutsche Bank AG and CMB International Capital Ltd were all hand in glove to sponsor Canaan’s proposed Hong Kong listing.
Crypto market in the year 2018 has seen immense volatility. Bitcoin has seen a drop of approximately 80 percent which has made it even more tough for investors to put in their money in businesses related to stock markets. The fall of the crypto market also affected the stock market and Nvidia. One of the chip makers apart from Canaan was labelled and declared as worst performing in S&P 500 group of stocks in the final quarter of 2018.
Bitmain Technologies Holding Co, which is one of Canaan’s biggest competitor and the largest mining chip maker in the entire industry along with Ebang International Holding Inc also filed for the IPO listing in Hong Kong in the previous year. After a dull 2018, it looks like the year 2019 has got some hope for the crypto mining industry.