Chinese Bitcoin Mining Chip Maker Canaan Plans U.S. IPO

Chinese Bitcoin Mining Chip Maker Canaan Plans U.S. IPO

Chinese bitcoin mining hardware maker Canaan Inc. is considering initial public offering in the United States, Bloomberg reported, citing people with knowledge of the matter.

The number 2 mining equipment maker in the country, which shelved its plans for a Hong Kong IPO last year, is discussing the possibility of selling shares in New York as soon as the first half of 2019.

The report noted that deliberations are at an early stage, and there’s no certainty they will lead to a transaction.

Canaan in May last year had filed an IPO application on the Hong Kong stock exchange, reportedly aiming to raise around $1 billion. However, the company let its Hong Kong application lapse in November.

As per the report, an IPO would be a great way for Bitcoin mining companies to raise funding, but many exchanges are reluctant to list them citing the weakness in cryptocurrency market.

Canaan’s biggest domestic rival Bitmain Technologies Holding Co. as well as the smaller rival Ebang International Holdings Inc. also filed for Hong Kong IPOs last year.

But, recent reports stated that the largest cryptocurrency mining company, Bitmain, was struggling to move forward with its planned IPO amid concerns from Hong Kong regulators.

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