Canaan, Avalon Bitcoin Miner Creator, Discussing Another IPO at Shanghai Stock Exchange

Security investors may get another exposure to know more about Bitcoin mining as one of the leading mining companies Canaan seeks for another attempt to go public very soon.

Subsequently, major news sources claim that the company itself is seeking to include its shares in one of the major Science-Tech conglomerates that operate on the Shanghai Stock Exchange.

It is important to know that months before now, Canaan’s IPO attempt in HongKong lapsed. The mining company is making another attempt but hasn’t been concluded yet.

Canaan majorly targets China and the U.S for a new IPO, and it has informed the New York Stock Exchange and Nasdaq.

In the past, the company faced significant challenges in getting its shares listed on the Chinese marketplace and feels the process in China is just too long. It has decided to seek another attempt for an IPO not only in China but in the United States.

Canaan’s Recent Funding for another IPO

Canaan is planning to fund its new IPO attempt, in which several sources reported that the company raised several billions of dollars. But these funding hasn’t attracted any new investors yet.

A source very close to the company stated:

“There was a fundraiser, but there are no real investors because it all comes from old shareholders’ own pockets.”

The company boasts of only old investors but lacks new faces (investors), which shows the difficulty in getting new investors when it comes to mining operations. This difficulty may be due to the current bear market in the crypto space.

The same source, however, concluded by saying this:

“Based on the current bearish market situation, it’s just too difficult to gain investment.”

Canaan as a ‘Red Chip’ Company

The news on Canaan fundraising bid involving billions of dollars came just a few days after the Shanghai exchange-listed some set of rules for new companies performing fundraising.

These rules included “red chip” companies which Canaan is one of them. It is important to know that red chip companies are companies integrated overseas but have their business in China’s marketplace. Canaan is a red chip company because it is integrated in the Cayman Islands but operates in Hangzhou.

However, part of the rules have it that a red chip company applying for a fundraiser must be worth more than $1.5 billion and no less than $750 million; the company must have raked-in a revenue of $75 million in a year.

Canaan hasn’t reached that criteria. It is also necessary to know that the Bitcoin mining company only acquired just $43 million in its first round, which made the company worth $430 million in 2017. In the same year, Its IPO got only $56 million out of the $200 million of revenues.

Subsequently, the close source to Canaan couldn’t reveal the stakeholders who donated to the new round of funds generated by Canaan for the new IPO attempt, but most of these stakeholders are believed to be the existing ones in Hongkong, which include Nangeng Zhang,  Jiaxuan Li, and  Xiangfu Liu.

All in all, Canaan aims to use its chip development know-how to produce a new line-up of products. That includes appliances such as TV sets that can mine cryptocurrencies.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide