Mining equipment makers have become extremely popular with the rise in the crypto market. From small manufactures making specialized ASIC equipment to companies that provide industrial grade equipment to mining farms, all manufacturers have seen a rise in their business. In an example of rising popularity of such companies, Canaan Creative, one of the world’s largest cryptocurrency mining equipment manufacturer is planning to launch an IPO.
Canaan has seen a massive growth in sales in 2017 amidst the cryptocurrency boom and now control more than 25% of the market share of mining equipment. Now, when the cryptocurrency prices are on a decline, Canaan says their cheaper models will sell more as a result of this.
Canaan Creative had criticized the Chinese government for not doing much in their power to help crypto companies has asked the Chinese government push to promote the domestic chip industry to help drive the growth of the company. However, they are considering an IPO in Hong Kong or the United States, even though their co-chairman Jianping Kong insists that doing IPO on foreign soil has nothing to do with the country’s recent ban on cryptocurrency mining and trading operations.
A point to be noted is that Canaan is facing heavy competition from Beijing-based Bitmain and US-based Bitfury, and the IPO is a way to raise money to get ahead of them. They haven’t disclosed the amount they wish to raise till now. Other actions Canaan is taking to outdo competitors is their plans to offer home appliances that run on Blockchain computing power. They are even planning to create its own AI chip and specific mining equipment that mine altcoins.