Canaan May Begin New York IPO by End of Q2 2019, Anonymous Sources Tell Bloomberg

Published at: Jan. 8, 2019

Chinese Bitcoin mining hardware manufacturer Canaan Creative is considering a new initial public offering (IPO) in New York, Bloomberg reported on Jan. 8, quoting anonymous sources.

Canaan, China’s second-largest hardware player, could begin selling its shares in a private placement in the first half of this year, according to the people familiar with the matter who declined to reveal their identity.

Canaan, like industry leader Bitmain Technologies, had originally planned to conduct an IPO in Hong Kong, but the $400 million plans lapsed in November.

Without quoting the anonymous sources directly, Bloomberg added that “deliberations are at an early stage, and there’s no certainty they will lead to a transaction” for a NYC-based IPO.

The rumors come following a tumultuous several months in the Bitcoin mining sector. Led by Bitmain, entities have seen considerable losses on the back of plummeting Bitcoin (BTC) prices and associated decreases in demand and activity.

While Bitcoin’s network hashrate has since begun to recover, reports in December were widespread that Bitmain’s IPO plans, also scheduled for Hong Kong, were to go nowhere due to reluctance from Hong Kong’s stock market regulator.

Bitmain is still set to lay off potentially huge numbers of employees in the short term.

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