A bitcoin asics manufacturer, responsible for 25% of the machines that secure the bitcoin network, is considering an Initial Public Offering (IPO) in Hong Kong or in the United States.
“We… prefer listing outside mainland China as we are in a global business,” Jianping Kong, co-chairman of Canaan Creative, said.
Canaan invented the first Bitcoin asics, the Avalon miners, generating around $150 million in revenue during 2017. They’re less well known than Bitmain or Bitfury, their competitors, but they have been expanding, announcing a new facility in Sweden last year.
To fuel their growth, they tried to get listed on Shenzhen’s stock market through a reverse acquisition of $466 Millions, but failed in that attempt.
Regulators apparently blocked the reverse acquisition, with Coindesk reporting at the time “stock exchange officials balked because of the perceived risks and uncertainty surrounding both the company and bitcoin as a technology.”
Cannan said at the time they “decided to cancel the acquisition deal due to standard regulatory changes in the securities market that made the deal face uncertainty for both parties.”
Their ambition to IPO, however, clearly remains intact. Something which would make them the very first crypto/blockchain company to have an initial public offering.
“This… investment provides us the necessary resources and autonomy to make even better products and innovations that our customers expect,” N.G. Zhang said at the time regarding the attempted Shenzhen listing.
Yet it remains unclear whether they will be given the green light for stock exchange listing either in US or Hong Kong with Jianping Kong stating he was not worried about China’s banning of crypto-exhanges because he says “as an integrated circuit company, we are supported by government policies.”
If they do get approval, then it might be just the beginning of crypto companies going the IPO route because this space has now grown considerably with a number of mature and profitable companies attracting intense speculation regarding potential IPOs.
Coinbase is chief amongst them, with VCs scrambling to get in on the potential deal, but other exchanges, miners, and service providers might not be far behind.
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