Canaan Creative has filed to publicly list on the Nasdaq and raise $400 million through an IPO.
This would be the third time the company tries going public. The information was released by Reuters a few hours ago.
Canaan Creative Files For $400 Million IPO
This cryptocurrency mining company is considered the second-largest Bitcoin mining machine designer in the world. The main goal behind this IPO is to research into artificial intelligence and blockchain research. Moreover, the firm wants to pay debts as well. Three years ago, the company tried to list itself in China but without positive results.
Canaan was founded back in 2013 and it sells the popular Avalon bitcoin miners. Some of the companies that are interested in Canaan’s Nasdaq IPO include Credit Suisse, Citigroup, China Renaissance and CMB International.
The cryptocurrency mining industry is controlled by the giant company Bitmain, which sells different ASIC miners to the market. They do not only offer mining hardware but they are also moving towards Artificial Intelligence (AI) considering the mining market is highly dependent on Bitcoin price cycles.
It is worth mentioning that Bitcoin’s hash rate has been growing since December 2018 and it reached 114 million THs a few days ago. This shows there is interest in mining devices among the cryptocurrency community.
Moreover, if there is a bull market as many analysts predict, miners could be attracted by high Bitcoin prices and purchase more ASIC devices.
The decision to apply for an IPO on Nasdaq comes after Chinese President Xi Jinping positively commented about blockchain technology. China is pushing for greater adoption of distributed ledger technology (DLT) in different industries.
Xi Jinping commented about it:
“We must take blockchain as an important breakthrough for independent innovation of core technologies, clarify the main directions, increase investment, focus on a number of key technologies, and accelerate the development of blockchain and industrial innovation.”
Next year, Bitcoin is expected to experience a new halving event. This would reduce the rewards that miners receive for the work they do confirming transactions and securing the network.
If Bitcoin’s price is not able to experience sustainable growth after this halving event – which is unlikely – mining companies could start selling fewer units. Nevertheless, it could also be a good opportunity for them to work on next-generation ASIC miners for the whole cryptocurrency industry.