Crypto Mining Giant Canaan Considers New York IPO

News | January 10, 2019 By:

Chinese bitcoin mining hardware firm Canaan is considering an initial public offering (IPO) in the US after shelving its Hong Kong IPO plans.

Canaan produces application-specific integrated circuits (ASICs) for use in bitcoin mining. As of September 2018, the company was the world’s second-largest mining hardware manufacturer.

In May 2018, Canaan filed for an IPO on the Hong Kong Stock Exchange (HKEX), seeking to raise $1 billion. The Canaan’s Hong Kong IPO sponsors reportedly included Credit Suisse, CMB International Capital, Deutsche Bank and Morgan Stanley. However, the company did not proceed ahead and its Hong Kong listing application lapsed in November.

Citing people with knowledge of the matter, Bloomberg reported that Canaan is now considering the possibility of selling its shares in New York in the first half of this year.

“Deliberations are at an early stage, and there’s no certainty they will lead to a transaction,” the people said.

Other crypto mining firms have also filed for Hong Kong IPOs last year, including Bitmain, the largest maker of specialized mining chips for the crypto mining industry, and Ebang International Holdings. Both firms could also end up having to look elsewhere as the HKEX is reportedly reluctant to approve crypto-related IPOs due to the volatile nature of the industry.