Latest Approaching Billion Dollar Crypto Unicorn Company Canaan Looks to Surpass Bitmain’s Top Spot
After the recent massive influx of capital, it can be safely said that Canaan Creative is on the way to dethrone Bitmain as the leaders in the mining hardware space.
The company, known for its Avalon line of mining devices, is now valued at over $1 billion, saying:
“This is great news for Canaan as their attempt at clinching an initial public offering (IPO) in Hong Kong failed a few months ago in November.”
Reports have subsequently emerged that Canaan could undergo the process again in New York in Q2 2019.
Known as the world’s second largest manufacturer of cryptocurrency mining hardware, Canaan Creative was founded back in 2013 and employed up to 200 people in Beijing and Hangzhou by 2018, mostly in research and development positions. Beyond its Avalon line of miners, the company was looking into creating other products such as home appliances, including a television set that mines cryptocurrencies “while you sleep” and specialized chips to power artificial intelligence (AI) applications.
Mining rig manufacturers like Bitmain and Canaan took the worst hit as mining operations amid bearish trends have become almost unprofitable, not just for individual miners but even the firms who are running an entourage of several mining rigs together. The profit margin is so thin that at the peak of the bearish trend most of the individual miners in China had to sell their mining equipment in the second-hand market against the weight of the machines.
Bitmain both filed for their respective IPOs in September. However, as the bearish market continued to run havoc, Bitmain registered losses worth $500 million in its last quarter which they updated with the Hong Kong Stock exchange as a part of the IPO application. If Bitmain fails to graduate to a listing hearing by March 26, six months after its initial filing, their application might also lapse, just like the initial filling of Canaan.