China's second Largest Hardware Producer for Bitcoin Mining Hardware, Canaan Creative, to launch $1bn IPO
China's second-largest bitcoin mining hardware developers, Canaan Creative, is planning to develop and launch an Initial Price Offering (IPO) on the Hong Kong Stock Exchange.
The proposal to launch in Asia as opposed to the US means it will be the first ever to be placed on the market in Hong Kong. The decision was made to ditch America in favour of a launch in Asia, due in part to the fact that the vast majority of its clientele are in that geographical location.
Canaan is looking to strengthen its position as a hardware developer, while also moving further into the world of software production. In 2016, the company had published un-audited revenue results which showed a 600% increase in its annual net income.
This income had reached 410 million Yuan ($64 million) in 2016 with this revenue certain to increase as it expands within and beyond hardware. Canaan has proven successful in carving out a strong space in bitcoin mining due to its client population predominantly from China.
This primary location allows for both a large population of users, while also benefitting from China's cheap electricity supply. Currently, the People's Republic makes up roughly 60% of all bitcoin mining worldwide, and corners the market in the number of blockchain-related patents filed.
Chinese authorities are taking a hardline stance, and have been since late 2017, when the Central Bank issued a ban on coin exchanges. Current legislation appears to be moving to restrict power usage in cryptocurrency mining. It's due to these factors, that many of Canaans rival companies have had to expand operations overseas to the United States, Europe and Canada.
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