Canaan Inc. a Chinese crypto company that manufactures mining hardware is reportedly considering an IPO in the U.S. This is according to people being in the know. The company is the second largest Bitcoin mining hardware manufacturer in China, and it’s seeking to be listed on the New York stock exchange.
The move follows a proposal filed by the company last year to be listed on the Hong Kong stock exchange which lapsed in November of last year. Now according to the people who have asked not to be identified since the information is private, talks are at an early stage however there is no guarantee that they will lead to a transaction.
Canaan Inc. was founded in 2013. It sells crypto mining equipment under the Avalon brand which is customized to use less power while offering optimum returns.
Jianping Kong, the chairman of Canaan, is yet to comment on the fallen bid to be listed on the Hong Kong stock exchange. Bitmain, which is the leading Bitcoin mining hardware manufacture in China and Ebang International Holdings Inc. had also filled for IPOs with the exchange without success.
The extended bear market has seen the prices of cryptocurrencies sink. It has been cited as one of the reasons why crypto companies have struggled to attract traditional stock market investors. The low prices have also meant miners have seen their profits dwindle.
For now, we have to wait and see if Canaan will go ahead and file for listing on one of the leading stock exchanges around the world. It will be interesting to see if the NYSE will agree to the listing given that the Hong Kong stock exchange was hesitant with approvals given the uncertainty that always surrounds cryptocurrencies.
What’s your take on Canaan Inc. desire to be listed on the NYSE? Share your thoughts in the comment section below.