Mining Firm Canaan Creative Secures Hundreds of Millions of Dollars in Funding
The sustained bear market has hit cryptocurrency miners hard and stalled the incredible growth experienced by hardware manufacturers that service the industry. It seems that investors are still willing to pour significant money into the business, however, judging by Canaan Creative’s latest raise.
Canaan Creative Now Worth Billions
Canaan Creative Co. Ltd, the Chinese company behind the Avalon lineup of ASIC mining chips and rigs, has successfully completed a round of financing worth hundreds of millions of dollars according to media reports from the Asian country. According to these reports, citing unnamed informed sources, the mining hardware manufacturer has now received a valuation in the billions of dollars following the latest funding round.
Known as the world’s second largest manufacturer of cryptocurrency mining hardware, Canaan Creative was founded back in 2013 and employed up to 200 people in Beijing and Hangzhou by 2018, mostly in research and development positions. Beyond its Avalon line of miners, the company was looking into creating other products such as home appliances, including a television set that mines cryptocurrencies “while you sleep” and specialized chips to power artificial intelligence (AI) applications.
Is Canaan Still Chasing an IPO?
Canaan getting a valuation in the billions can be seen a show of confidence by investors in the field. Previously the company was known to be trying to get its shares listed on the Hong Kong stock exchange in an initial public offering (IPO) estimated to range from $400 million to $1 billion. The IPO, which was initially expected in 2018, hasn’t materialized after regulators in Hong Kong reportedly raised concerns about Canaan’s business model and future prospects.
The Hong Kong market wasn’t the first avenue the company examined for listing its shares. In 2017 Canaan was known to be looking to list on China’s National Equities Exchange and Quotations, an over-the-counter market, and in early 2018 it was reportedly examining its options for a U.S.-based IPO.