As the interest rate of cryptocurrency is continuing to grow, so is the interest rate of cryptocurrency mining. There is a drastic demand for the equipment that is used for cryptocurrency mining in most places in the world. It with this backdrop of events that led to cryptocurrency mining equipment manufacturer Canaan Creative to report that there was a high demand for their products in 2017.
When the cryptocurrency global market received a crash, most miners were optimistic about the future of the market and its stability. Canaan is an established brand as the leading manufacturer of mining equipment. This Chinese company is planning to launch an IPO though analysts have been surprised to learn that it plans to launch the IPO outside China.
The Canaan IPO
In the year 2016, Canaan tried to get listed in China though through a $485 million back-door listing but it failed to due to regulatory issues. With its financial muscle, the company is now planning to launch outside China a move that has been welcomed. The United States and Hong Kong are some of the countries that have been so far mentioned as countries where the IPO could be held.
“We prefer listing outside mainland China as we are a global business,” said Jianpig Kong who is the co-chairman of Canaan.
Majority of the people had the view that Canaan had decided to raise an IPO outside China due to the recent ban on cryptocurrency mining and trading but that was not the case according to Mr. Jianpig who said that the listing process in China was taking too long.
“As an integrated circuit company, we are supported by government policies.” said Mr. Jianpig Kong.
Canaan is also facing stiff competition from Beijing-based Bitman and Us-based Bitfury cryptocurrency mining companies. The company is also be trying to diversify its products as it plans to create its own AI chips and other mining equipment that mine altcoins.
CHINA HAS INTRODUCED TAX BREAKS FOR CHIPMAKERS
The Chinese government has introduced tax breaks for chipmakers in the country in a move so as to down dependence on foreign manufacturers as trade tensions with countries such as United States get soar.
It is also interesting to note that cryptocurrency trading in China has become under a lot of scrutiny with the regulatory bodies in the country worrying about the financial risks created by the virtual currency.
Canaan has clients in different parts of the world while many of its machines are set up in electricity-rich areas where large bitcoin mines have been formed. Such areas include Xinjiang, Sichuan, Yunnan and Inner Mongolia. Canaan is also believed to have employed 200 people around Beijing area.
It will be interesting to see how things will develop now that Canaan wants to launch an IPO outside China and if at all investors will be willing to spend their money in the IPO or not. Others believe that this is a bold by the world’s leading cryptocurrency mining equipment manufacturer to launch an IPO outside China.