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Canaan Creative – the second-largest developer and distributor of bitcoin mining equipment – has filed for a public listing on the Nasdaq. The company is hosting a $400 million initial public offering (IPO) to potentially pay off debts and fund both blockchain artificial intelligence (AI) research.
Canaan Creative Is Rushing to the Goal
Canaan is among the largest companies developing bitcoin miners, and is second only to Bitmain, which like Canaan, is stationed in China. As it stands, both companies stand to miss out granted China ever decides to implement the bitcoin mining ban it’s been discussing for so long.
However, as it stands, no steps have been taken towards such a ban, and both companies can operate as planned without interruption. Perhaps China is a little worried about losing billions in state revenue from these companies and is thus a little hesitant to say no to mining outright.
Either way, should the ban ever be implemented fully, both enterprises would probably be required to shut their doors completely or relocate to a neighboring region. Several once Asian-based crypto companies have done so, such as Binance.
As the world’s largest and most popular cryptocurrency exchange, Binance has since relocated from Asia to Malta in Europe due to the country’s willingness to accept blockchain startups, and for its easy-going regulatory tactics towards crypto.
This is Canaan’s third attempt to potentially try and host an IPO. Prior attempts occurred in China and have either failed to appease regulators or did not generate enough interest from investors. This third attempt, granted it’s given the greenlight, would see Canaan Creative listed on the Nasdaq.
The application for the listing comes at a very interesting time. Days ago, Chinese president Xi Jinping commented that blockchain has the power to stabilize China’s infrastructure and that he plans to push blockchain research and development to the front lines.
In addition, news arrived yesterday stating that Bitmain’s co-founder Micree Zhan was no longer with the company, and that he had been replaced by former CEO Jihan Wu as the company’s primary representative. With all the turmoil of corporate politics smacking Bitmain in the face, this could be a great opportunity for Canaan Creative to take some form of lead.
It’s in a Great Position
Either way, it looks like Canaan is also in a solid position considering the bullish behavior being exhibited by bitcoin and its altcoin cousins as of late. Yesterday, bitcoin struck the $9,400 mark after wallowing in the mid-$7,000 range last week, while bitcoin cash (BCH) is trading for as high as $287 at press time. Perhaps interest in crypto is spiking again, which could potentially do wonders for Canaan from an investor standpoint.
Around since 2013, Canaan Creative is supported by leading financial institutions such as China Renaissance, Credit Suisse and Citigroup.