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.

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Crypto Community Thrilled to See Twitter Introduce a Bitcoin Emoji

Siamak Masnavi

On Sunday (February 2), Jack Dorsey, the Co-Founder and CEO of micro blogging platform Twitter (as well as Co-Founder and CEO of mobile payments company Square), sent out a tweet to demonstrate the symbol that now appears next to the "BTC" or the "bitcoin" hashtags when you create a tweet using the official Twitter app for iOS or Android.

Bitcoin Emoji.png

Note that in this tweet, the Twitter CEO has tagged the Unicode Consortium, a non-profit organization based in Mountain View, California, the purpose of which is "to maintain and publish the Unicode Standard which was developed with the intention of replacing existing character encoding schemes which are limited in size and scope, and are incompatible with multilingual environments." Presumably, his intention was to encourage the Consortium to consider adding a new graphic character representing Bitcoin to the character repertoire of the Unicode Standard.

As you can see in the replies to Dorsey's tweet, one of the first Bitcoiners to enthusiastically welcome this idea was Elizabeth Stark, Co-Founder and CEO of Lightning Labs.

Many members of the crypto community have joined the party by sending out tweets that contain the "#bitcoin" hashtag in an effort to get this to become a "trending" hashtag on Twitter, thereby raising awareness.

Here are a couple of examples:

This is not the first time that Dorsey has expressed his support for Bitcoin.

According to Bloomberg, on 16 May 2018, Dorsey, shared his belief in Bitcoin with a crowd of crypto enthusiasts at the Consensus 2018 conference in New York:

The internet deserves a native currency; it will have a native currency. I don’t know if it’ll be Bitcoin or no, but hope it will be.

Last year, according to the transcript of Square's Q2 2019 Earnings Conference Call, during the prepared remarks section of the earnings call, Dorsey made the following comments about Cash App:

The Cash App ecosystem continues to exceed our expectations. In just three years, Cash App revenue performed basically $0 million to $135 million, excluding Bitcoin. We love you, Bitcoin.

And more recently, on January 21, Square Crypto, the crypto-focused division of payment solutions provider Square, announced that, in order to accelerate bitcoin adoption, it is working on a Lightning Development Kit (LDK) that will make it easier for developers of wallets (and other applications) to "create custom experiences."

Square Crypto, which was launched in March 2019, was "designed to strengthen the bitcoin ecosystem", as product manager Steve Lee explained via the following tweets in July 2019: