The world’s largest cryptocurrency mining equipment manufacturer, Chinese behemoth Bitmain, has a competitor hot on its heels seeking to increase its market share and take some of its business away. Plans are in the works to significantly increase manufacturing capacity at Canaan Creative, maker of the popular Avalon mining equipment. The company is seeking $1 Billion in an Initial Public Offering of its stock on the Hong Kong Stock Exchange.
Canaan Creative, the world’s second-biggest maker of bitcoin mining hardware, has submitted an application for a Hong Kong initial public offering that could raise about $1 billion, people with knowledge of the matter said.
The Chinese company aims to start trading as soon as July, one of the people said, asking not to be identified because the information is private.
A listing of Canaan would be the first Hong Kong IPO from the cryptocurrency industry. The company has about 15 percent share 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.
Canaan, founded in 2013, sells computer equipment under the “Avalon” brand with fast customized chips that win digital coins by solving complex math problems. The company’s hardware often ends up in remote locales housing large mining pools that depend on cheap electricity, Co-Chairman Jianping Kong said in an April interview.