ASIC Builder Canaan Considering US IPO After Hong Kong Filing Rejected

Colin Muller

Canaan Creative, a producer of application-specific integrated-circuit cryptocurrency miners (ASICs) and competitor to Bitmain, is considering conducting an Initial Public Offering (IPO) in the US after its IPO application to the Hong Kong Stock Exchange (HKEX) lapsed and was therefore rejected by default. Bloomberg reported the news today citing insider sources.

The China-based ASIC firm is in talks to “[sell] shares in New York as soon as [H1],” according to Bloomberg. Canaan had hoped to be trading on the HKEX by July 2018, after filing in May.

CryptoGlobe reported in November that Canaan’s IPO application in Hong Kong had expired to no result, despite backing from big names such as Morgan Stanley, Deutsche Bank AG and Credit Suisse Group. The firm had to continuously adjust its raising targets down, first from $2 billion to 1$ billion, then to $400,000.

An anonymous source, cited by CoinDesk, claimed that the HKEX was tepid on crypto-related businesses because of the industry’s youth and volatility, and that this coolness was causing delays in application approval. The source added that “The HKEX doesn’t want to be the first exchange in the world to approve [an ASIC producer] and have [it] die on them”

The three largest ASIC producers - Bitmain, Canaan and Ebang - had all filled for IPOs in Hong Kong during 2018. Bitmain’s and Ebang’s prospects for approval are not much better.

Success in the US?

The South China Morning Post (SCMP) recently reported that the HKEX, briefly an attractive IPO destination for Chinese tech firms after a 2018 reform of its listing rules, is rapidly waning in popularity in favor of US listing.

This is apparently due to the poor market performance of tech companies listed in Hong Kong, below expectations. Analysts cited by the SCMP claim that the US has a “a deeper investor base for technology companies,” and that IPOs there could be smaller and still succeed.

Canaan reported $191 million of revenue in 2017, according to its HKEX filing - far dwarfed by Bitmain’s $2.5 billion revenue during the same period.

Roger Ver Shows Interest in Buying Satoshi Nakamoto's Original Bitcoin Website

Bitcoin.com founder Roger Ver has shown interest in buying the Bitcoin.org website, which was originally registered by Bitcoin creator Satoshi Nakamoto and developer Martii Malmi.

As CryptoGlobe reported, on a GitHub post Cobra Bitcoin, the pseudonymous co-owner of Bitcoin.org, has announced he will be gradually reducing his involvement with the website and leave it “in trusted hands.”

In his original post Cobra noted he had some people in mind, but asked for individuals or organizations that could be a good fit to maintain the website, which is currently being used to onboard new users into the flagship cryptocurrency and ranks highly for the term “bitcoin” on search engines.

Cobra has been widely criticized in the cryptocurrency community proposing changes to Satoshi Nakamoto’s original Bitcoin whitepaper, and has seen mixed reactions to his announcement of reducing his involvement in the website. On Reddit, one user asked whether he would sell the website to Roger Ver.

Roger, taking advantage of the opportunity, responded via his MemoryDealers handle to say he has “cash in hand,” showing interest in acquiring the domain. Ver is well-known for running Bitcoin.com and campaign in favor of bigger blocks on the Bitcoin blockchain. In August 2017, he moved his support to Bitcoin Cash (BCH).

Speaking to CoinTelegraph, Ver noted he would “gladly buy” the Bitcoin.org website, but does not expect Cobra to sell it to him. He added he hasn’t made any efforts outside of that comment to buy the domain. As to who would be best suited to take over Bitcoin.org, he said:

Maybe a Bitcoin Foundation-like organization that is made up of the businesses building on crypto. The [Electronic Frontier Foundation] EFF might not be bad either. Anyone who supports free expression of ideas would be better than the current group.

When asked what he would use the domain for, he said it would be used to promote “peer-to-peer electronic cash systems.” Ver asserted, however, he hasn’t put much thought into it as he doesn’t expect to be given a chance to buy the website.

Featured image via Bitcoin.org.