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One of China’s largest crypto mining hardware manufacturers, Canaan Creative, has filed to list on the Nasdaq on Monday.
The Nasdaq is an electronic exchange where stocks are traded through a digital platform instead of a trading floor. Canaan Creative is set to raise $400 million as it aspires to get listed after previously having failed twice in both China and Hong Kong, marking this as the company’s third initial public offering (IPO) attempt.
Canaan Creative defines itself as the second biggest Bitcoin mining technology designer and manufacturer in the world (behind Bitmain). The company, which is based in Hangzhou, claims that the money made will be used to fund research on artificial intelligence. The company also promises that more exploration of blockchain technology will be sponsored and the cash will also be utilized to pay off debts.
Although the company makes promising claims, the motives for Canaan Creative to try for an IPO again this time are unclear. Three years ago, Canaan Creative tried to list itself in China through a reverse merger and purchased an electric gear manufacturer from a company based in Shandong. Two years later, it tried to list again for Hong Kong float. Since regulators had concerns over the business model and prospects, both times the company failed to reach its goal.
The company’s application for IPO the third attempt for Nasdaq was supposedly inspired when President Xi Jinping of China encouraged the expansion of blockchain technology. The statement was made last week and was followed by staggering increase in prices of multiple cryptocurrencies, electronic currency-linked firms and various Bitcoin-associated digital assets.
Crypto Companies Struggle in China
China previously has sent unclear signals regarding the fate of Bitcoin(BTC)trade and other cryptocurrencies in the country. Back in 2017 and April of this year, authorities in Beijing shut down local cryptocurrency exchanges in a series of raid operations. The act was perceived as means to eradicate Bitcoin mining in the country and a way to discourage citizens from holding or exchanging cryptocurrency assets.
The Chinese national media previously claimed that blockchain innovation and progress should not be mistaken for an institutional and government embrace of digital currency assets. Canaan Creative, founded in 2013, aims to create and distribute high quality cohesive circuits.
The company is also behind the Avalon series of Bitcoin mining gears. Some of the banks working on the Canaan Creative’s Nasdaq IPO are China Renaissance, Citigroup, Credit Suisse, and CMB International.