Bitcoin Mining Hardware Manufacturer Canaan Confirms $1 Billion IPO Filing

Jordana Sacks
  • Chinese company Canaan Creative would like to start trading as early as July.
  • The firm is seeking the first Hong Kong IPO for a cryptocurrency enterprise.

Canaan Creative, the world’s second-largest producer of bitcoin mining hardware, has recently submitted an application for an initial public offering (IPO) worth around $1 billion.

According to those in the know, the Chinese company would like to begin trading as early as July, despite the fact that the size and timing of the IPO have not yet been publicly announced.

Speaking on its earnings, Canaan Creative’s parent company, Canaan Inc., which is based in the Cayman Islands, revealed on Tuesday that the group had revenue of around $203.8 million, with its profit surging six-fold in 2017.

If Canaan Creative’s bid for the IPO is successful, this will make it the first Hong Kong IPO from the cryptocurrency industry. Some major backers appearing on the filing including Morgan Stanley, Credit Suisse, and Deutsche Bank.

Founded in 2013, Canaan sells equipment under the guise of Avalon. Specializing in fast, customized chips that help users mine cryptocurrencies by solving complex problems, it holds a 15 percent share of the global market in its sector, with its Chinese rival Bitmain just pipping it to the post.

Growing from 50 million yuan (about $7.8 million) in 2013 to 7.3 billion (roughly $1.1 billion) yuan in 2017, the country’s ASIC-based cryptocurrency mining hardware market is expected to continue expanding in the years ahead, with forecasts suggesting that its value will reach 28.8 billion yuan ($4.5 billion) by 2020.

Despite this, Canaan has no intention of simply consolidating its successes. Announcing last year that it also plans to develop dedicated chips for use in artificial intelligence applications, the company looks set to expand its market dominance further.

Prior to pursuing this Hong Kong IPO, Canaan prepared to list itself on China’s National Equities Exchange and Quotations, an over-the-counter market known as the New Third Board, last year.

Bitcoin Investors Reportedly Lose Millions in South African Exit Scam

Michael LaVere
  • VaultAge Solutions CEO Willie Breedt is being accused of making off with millions in investor bitcoin.
  • Breedt allegedly fled the country for Mozambique and has not communicated with investors since December 2019. 

South African cryptocurrency investors are accusing the CEO of VaultAge Solutions of stealing millions in crypto before going on the run. 

According to a report by AllAfrica, Willie Breedt, the CEO of cryptocurrency investment firm VaultAge Solutions, is presumed to be on the run after not making public communications since December 2019. The report claims Breedt was speculated to be staying near the town of Jeffrey’s Bay and that his whereabouts where being looked into by the country’s criminal investigation unit. 

However, South Africans who invested cryptocurrency with the now-defunct firm fear the CEO may have fled the country for Mozambique. 

Breedt is accused of stealing millions from bitcoin investors. The report claims VaultAge Solutions is not registered as a legitimate financial institution with the Financial Services Conduct Authority (FSCA), despite having more than 2000 investors. 

The report quoted investor Lettie Engelbrecht from Krugersdrop, 

We are pensioners and invested R200 000. From December until April, we received payments on the growth of our investment. Since then, we never got any money. We are desperate and living on a shoestring budget.

One South African investor reportedly had deposited more than R6 million ($342,000) with Breedt’s company. 

Breedt delivered a written reply to local outlet News24, explaining, 

I am busy attending to the commitments I have made to members. The commitment is to have all the initial capital paid back by 31 May.

Colonel Katlego Mogale of the Directorate for Priority Crime Investigation (DPCI) said authorities are investigating the case but cannot reveal any more information “at this stage.”

Featured Image Credit: Photo via