Crypto Mining Hardware Manufacturer Canaan Considers New York IPO

One of the world’s largest crypto mining hardware producers Canaan Creative is in our blockchain news today after the company reportedly is considering going public in New York.

According to a few sources, the ASIC manufacturer is hoping to use the possibility of holding its initial public offering in New York sometime in the first half of 2019. There are still negotiations regarding this issue and there is no guarantee that the plans will come true.

Canaan has previously applied to the Stock Exchange of Hong Kong list but postponed the plans last year after the listing application lapsed. The sponsors of Canaan’s Hong Kong IPO included the CMB International Capital, Deutsche Bank, and Morgan Stanley.

The listing got lapsed mainly because concerns showed up by local regulators and the Stock Exchange of Hong Kong as well, about the company’s business model. A few bankers also expressed concerns that the business could be in trouble with the falling of the bitcoin prices and that it is not possible to forecasts how the financials of the company will turn out:

‘’With the bitcoin price dropping so much this year, there’s a lot of uncertainties over their business. If we cannot forecast their financials, how can we sell their IPOs?’’

The demand for mining rigs has reduced incredibly after the bearish wave hit the crypto market and Canaan halved its IPO target by more than 80%.

By turning to the United States, Canaan is showing signs that its rival Bitmain could also end up trying to find a new place for its IPO.