During the gold rush of the 18th century, many made their fortunes by selling equipments to miners. In today’s digital gold rush, supplying equipment to bitcoin miners is where the money’s at. Canaan Creative, the world’s second-biggest maker of Bitcoin mining hardware, submitted an application for an initial public offering that could raise about $1 billion.
Canaan is known for mass producing chips designed for bitcoin mining, known as application-specific integrated circuits (ASICs), under the brand name Avalon. The company comes after Beijing-based competitor Bitmain as the world’s second-largest bitcoin mining hardware supplier in market share. It was founded in 2013 (link in Chinese) by Zhang Nangeng, a chip-design expert in his mid-thirties.
The Chinese company aims to start trading in Hong Kong as soon as July, said one of the people, asking not to be identified because the size and timing of the IPO haven’t been announced publicly. The group had revenue of $203.8 million in 2017 while profit surged six-fold to $56.6 million, the company’s Cayman Islands-based parent, Canaan Inc., said in a filing Tuesday.
It would be the first Hong Kong IPO from the cryptocurrency industry. Canaan has about 15 percent of the global market for Bitcoin mining chips and computer equipment, trailing Chinese rival Bitmain, according to a February report from Sanford C. Bernstein & Co.
The company also announced last year it was developing dedicated chips for use in artificial intelligence applications.