China’s second-biggest maker of Bitcoin mining hardware, Cannan Inc., shelved plans for a Hong Kong Initial Public Offering [IPO] and might consider listing in the US, said a source in a report by Bloomberg.
The Bitcoin mining hardware company, aiming to raise about $1 billion earlier, now is examining the possibility of selling shares in NASDAQ in the first half of the year, reported the publication. However, the discussions for the same are still going on and it’s too early to say whether it will lead to a transaction, reported the publication.
The company’s listing application terminated in November 2018. As per the data collected by the publication, Chinese companies have raised up to $1.9 billion through US IPOs and any deal thus made would just add to this number. The publication reached out to Caanan’s co-chairman, Jianping Kong, however, he did not respond.
The top cryptocurrency, Bitcoin [BTC], has fallen by 79 percent from its record high in December 2017 and ever since, it has been difficult for the cryptocurrency companies to attract investors from stock-market. This made it less profitable for miners to generate new coins, reported Bloomberg. The largest producer of specialized mining chips for the crypto industry, Bitmain Technologies Holding Co., and smaller competition like Ebang International Holdings Inc., have registered for Hong Kong IPOs in 2018.
However, as per CoinTelegraph, Bitmain’s IPO attempt has failed, “due to reluctance from Hong Kong’s stock market regulator”.
The Beijin-based Caanan Inc., also sells computer equipment under the name of Avalon, along with customized chips that obtain digital currency by solving complex mathematical puzzles. The company was formed in 2013, registered 1.31 billion Yuan, an equivalent to $191 million of revenue in 2017 as per the Hong Kong exchange filing in May.
The sponsors of Caanan’s intended Hong Kong listing was sponsored by Morgan Stanley, Deutsche Bank AG, Credit Suisse Group AG, and CMB International Capital Ltd. as per the filing.
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