Bitcoin Hardware Company Canaan Considers Filing for IPO in the US

Rumors originating from sources close to the issue claim that Canaan Inc is considering an initial public offering (IPO) in the U.S. Canaan Inc is a computer hardware manufacturer based in Beijing, China which produces application specific integrated circuits used in Bitcoin mining.

In November it was reported that Canaan Inc let their application for a Hong Kong initial public offering (IPO) lapse. The application was filed six months prior; however, it was rumored that the stock exchange and regulators weren’t satisfied with the information provided to them and had more questions. In May 2018 Bloomberg reported that Canaan’s Hong Kong IPO could raise $1 billion. Now it looks as if Canaan is looking to the U.S. stock exchange, rather than re-filing with the Hong Kong stock exchange.

The sources close to the issue have asked not to be identified since discussions are still in their early stages, and it is unclear exactly when Canaan will file to go on the New York Stock Exchange (NYSE).

As of September 2018, Canaan is the world’s second-biggest maker of Bitcoin mining hardware, a somewhat prestigious title in the industry. However, Bitcoin is masked in uncertainty when it comes to public opinion and hence investors opinion. Bitcoin has now fallen 79 percent since its December 2017 record high, leading many to be wary of the cryptocurrency and its place on the stock market.

While this is currently a trying time for Bitcoin and its public image, it is still an extremely popular digital coin that has earned its place at the top in the cryptocurrency scene. Because of this, itcoin mining is set to be something that will continue for the foreseeable future, even with the price slump. Canaan has secured themselves a solid place in the number two spot for Bitcoin hardware and as such should continue to see success, despite Bitcoin’s volatile history.

It is too soon to say how the New York Stock Exchange will react to the application or how long it will take for the application to be approved (if at all), and whether the process will be smoother than their experience with the Hong Kong stock exchange. It is also unclear whether Canaan plans to refile with the Hong Kong stock exchange, or whether they are happy to lay that application to rest while they focus on their U.S. presence. We are expecting more information to be released officially in the upcoming months.

As if often the case when an anonymous source close to the issue leaks information, Canaan may now feel compelled to respond to the rumors, even if it is sooner than they would have initially.