Chinese manufacturer of ASIC-s intends to raise $ 1 billion via IPO

Chinese manufacturer of ASIC-s intends to raise $ 1 billion via IPO

Canaan Creative, the second-largest maker of ASIC-s, is going to spend IPO, through which hopes to raise $ 1 billion. The IPO, which should be the largest among cryptocurrency projects (not to be confused with the ICO) is planned to be held in Hong Kong.

Canaan Creative controls 15% of the market ASIC-s, and the company’s profit for last year amounted to more than 200 million U.S. dollars.

ASIC-key from Canaan Creative are very popular among the miners. The company’s flagship product – Avalon 841 power up to 13 teruhisa per second consumes 1290 watts per hour.

Canaan Creative also sells its products and retail customers, but mainly sells in large quantities. Unlike Bitmain, Canaan are not engaged in mining with their ASIC-s, and the profit of the company is completely dependent on equipment sales.

The company has received purchase offers in the past, in particular, from Shandong Luyitong Intelligent Electric. But the deal fell through due to uncertainty about the mining industry in China.

Currently, the market for ASIC-s is estimated at about 7.3 billion yuan (about 1.14 billion U.S. dollars). Frost & Sullivan analysts believe that by 2020 the market will grow three times.

Recently, the mining business is increasingly similar to the arms race. Thus, it is obvious that it is unlikely that mining will always be profitable.

It is worth noting that Canaan Creative, unlike Bitmain who develops ASIC for such algorithms as Cryptonight, Ethash and Equihash focused exclusively on Bitcoin.

News tags
Let's Disqus