On 9th May South China Morning Post (SCMP) reported that the second-largest Bitcoin (BTC) mining manufacturer Canaan Creative to seek an Initial Public Offering (IPO) on the Hong Kong Stock Exchange. Instead of US the company has decided to accomplish the IPO plan in Hong Kong.
SCMP added that if the company is successful it would be the first ever Block Chain Company listed on the city. Canaan’s listing plans are still unidentified and not made public yet, SCMP told that the company has raised $1bln for its IPO, as previously it was allowing both Hong Kong and US markets.
In 2016, SCMP Canaan attempt fell when the deal’s proposed valuation regulator contested as the Canaan had list an IPO on China’s yuan-denominated in share market. In year 2017, the company again fell and attempted a listing on China’s “New Third Board” market, though there is relatively less strict regulations on the market starters.
Canaan Creative company is based in the eastern Chinese city of Hangzhou, as the company has shown intuit result in January and made 600-fold increase with net income of $410 mIn yuan($64mIn) in year 2017. Due to cheap electricity supply in China, a country has became long crypto mining super power and majority of Canaan’s clients come from China SCMP states.
In 2017, China assumed that it has accounted for 50 to 70 percent of Bitcoin mining worldwide the same year and the country to be filed with patents filings of block chain technology of any country in the world.
Canada, Switzerland and Singapore and now US are the countries restricted by the Chinese for operations. Chinese authorities plans to potentially restrict the power use
of BTC miners in future which will affect Canaan and its rival as Bitmain the largest BTC mining manufacturing which is currently operating.