It Is Here That The Bitcoin Mining Rig Is Filing For $1B HK IPO

The Bitcoin IPO 

Continuing to be a big business with bright prospects is mining cryptocurrencies that are big enough for a mining rig manufacturing firm to file for a $1 billion IPO. 

Here it is notable that a major manufacturer of Bitcoin mining chips and other computing devices is Canaan Creative filing for an initial public offering along with the Hong Kong Stock Exchange. As of now, the company’s IPO application is remaining in draft form as it remains unclear how much capital the firm intends to raise as the Bloomberg report amounts to be around $1 billion in case the IPO succeeds with a reported amount, it is the development making the most valuable IPO in cryptocurrency industry ever. It is here that the listing of shares will be followed by the commencement of the trading that is expected to happen which will be the first-ever cryptocurrency IPO for the Hong Kong market. 

What Are The Financial Figures Of Canaan Creative?

Among the top manufacturers of ASIC chips used for mining bitcoins as well as other compatible cryptocurrencies is the company primarily known for its Avalon brand of bitcoin mining chip series ranking second with a 15 percent global market share of the bitcoin mining chips and computer equipment as it trails the Chinese leader Bitmain. Here it is the primary customer base that is including large mining pools that employ hardware gaining bitcoin rewards through the standard mining process.

The firm, therefore, reported an annual profit of $56 million as per the IPO filing during the year 2017, that came to be 500 percent increase over the previous year as also it stated annual revenue of 1.3 billion-yuan during the year 2017 that was a gain of 3,000 percent over the previous year

What Were The Earlier Funding And Corporate Developments?

Thereafter Canaan Creative has during an earlier year successfully raised around 300 million yuan in the Series A funding as it was then that the largest ever investment in the bitcoin mining firm. It has successfully drawn funding from leading Chinese investors like Baopu Asset Management, Jin Jiang International Group, and Tunlan Investment. Using the proceeds to expand into the new segment for developing dedicated chips and finally finding use in artificial intelligence applications, the company also has a software enterprise unit thereby called Hangzhou Canaan eligible for the preferential tax treatment. 

While it was listed, the Chinese electrical equipment producer called Shandong Luyitong Intelligent Electric has therefore attempted to acquire Canaan whereas regulators blocked the deal citing uncertainties. It was also reported by Bloomberg the predictions by Frost & Sullivan that the Chinese ASIC- based blockchain hardware market grows to 28.6 billion yuan by the year 2020 jumping from 50 million yuan in 2013 to 7.3 billion yuan in 2017. 

Which Are Those 3 Chinese Bitcoin Mining Firms Achieving Unicorn Status?

Bitcoin mining businesses despite the wide swing in bitcoin valuation has achieved a new milestone that is three Chinese bitcoin mining firms have gained the status of unicorns as the term is used for private companies valued more than $1 billion. 

Here Are The Three Pure-Play Bitcoin Miners 

CoinDesk reports the inclusion of Bitmain, Canaan Creative, and Ebang as it was based on the Q2 Unicorn Index report published by the Shanghai-based Hurun Research Institute for Greater China. In this context, it is the first time the Hurun list includes fully cryptocurrency-focused companies. 

Claiming to be the first consumer-grade 16nm ASIC miner Bitmain offers the best power efficiency and the best ROI of the bitcoin miner taking the 13th rank on the list of 130 companies. Here it comes to be valued at around 70 billion yuan or about $ 10.4 billion as it is supported by the company’s recent Series B round funding valuing it at around $ 10 billion where there is news of a potential IPO.

As it comes to be a global leader in the manufacturing of blockchain servers and designing ASIC microprocessor solutions, it comes to be valued at $3 billion and ranked at the number 32 on the Hurun list where Reuters report has valued Canaan at around $500 million. 

Moving on Ebang is the next bitcoin mining unicorn at the number 53 on the Hurun list valued at $ 1.5 billion. It is here that both Canaan and Ebang, therefore, filed the necessary draft applications to list on the Hong Kong Stock Exchange as there is no clarity over how much the firm is willing to raise by going public.

The Conclusion 

The above three firms have been into purely bitcoin mining as other large-sized companies are venturing into the bitcoin space and have been holding top ranks on the unicorn list. It is therefore found that Alibaba Inc,’s payment affiliate Ant Financial is holding top rank with the valuation of around $149 billion launching a blockchain-powered gateway for handling payments between Hong Kong and the Philippines with another fintech firm called OneConnect as the subsidiary of insurance company PingAn valued at $7.4 billion. Working with the Hong Kong Monetary Authority it is launching a blockchain-based trade finance platform expected to go live later.