Canaan Creative Secures “Hundreds of Millions” in New Funding Round

China-based cryptocurrency mining equipment manufacturer Canaan Creative has closed a new funding round.

Local media Securities Times reported March 11 that the firm, which is popular for its Avalon line of mining devices, has secured “several hundred million U.S. dollars,” making the company’s valuation more than $1 billion. The firm declined to comment about it, however. Notwithstanding, two sources privy to the matter confirmed the raise without mentioning specific details.

The news comes following Canaan’s proposal for an initial public offering (IPO) on the Hong Kong Stock Exchange was unsuccessful to reach a listing hearing and then became invalid. The company purportedly has plans for applying an IPO in New York in January.

The funding initiative also comes during the crypto bear market, particularly over the second half of 2018, when it had a huge impact on the crypto mining industry.

As such, Ebang and Bitmain, the two major rivals of Canaan, both applied for IPOs in June and September last year respectively.

However, Ebang mentioned in a renewed filing in late December that it suffered “significant decreases in revenue and gross profit” for the third quarter in 2018. Bitmain, on the other hand, also posted around $500 million loss in an updated financial statement filed as part of its IPO application with the Hong Kong Stock Exchange.

If Bitmain does not advance to a listing hearing six months after the first filing or before March 26, its IPO application too will lapse.