Canaan, one of the largest makers of bitcoin mining chips and devices based in China, is said to be considering an initial public offering (IPO) in the U.S.
According to a Bloomberg report on Tuesday, Canaan’s IPO will possibly launch during the first half of the year in New York. The process, however, is still on its early stages, said the people who have “knowledge of the matter.”
Last year, Canaan has considered launching an IPO in Hong Kong, seeking to raise $1 billion. The said IPO, however, has been dropped, according to Bloomberg. Canaan’s filing with the Hong Kong Stock Exchange (HKEX) lapsed in November.
Other major mining firms like Ebang and Bitmain also applied for IPO with the HKEX in June and September last year, respectively. As of the moment, none of the firms has received approval from the HKEX.
Based on reports, the HKEX is ambivalent in approving Bitmain’s IPO. According to an undisclosed source:
“The exchange is very hesitant to actually approve these bitcoin mining companies because the industry is so volatile. There’s a real risk that they could just not exist anymore in a year or two. The HKEX doesn’t want to be the first exchange in the world to approve this and have one die on them.”
On the other hand, Ebang, has filed its IPO prospectus with the HKEX again last month, citing “significant decreases” in revenue in the third quarter of 2018.