THELOGICALINDIAN - Canaan Inc has appear it will barrage an IPO in July with the ambition to accession 2 billion in funds in what would be the better BitcoinrelatedIPO to date
Canaan to Launch Biggest Bitcoin IPO Ever
Bejing based Canaan inc., the worlds additional better Bitcoin mining accouterments supplier added its all-embracing profits seven times in 2017 during the aerial Bitcoin amount chic affairs its articles beneath the AvalonMiner brand. Since those advantageous days, the advantage of mining Bitcoin has steadily declined. Today Bitcoin is account beneath than bisected of what it was in December 2017 and mining them is 60% beneath profitable.
This begs the question, why is this Bitcoin mining rig maker launching an IPO with a $2 billion ambition back the profits of and demands for its articles are in little demand? According to central sources who batten to Reuters about the move Canaan will present itself as a dent artist which focuses on bogus intelligence and blockchain technology development instead of a Bitcoin mining company.
“Their barter appear to be bitcoin miners. But they are a dent company, not a bitcoin company,” Said one of the bearding sources Reuters batten to.
Canaan produces what are accepted as ASIC chips advised for the atypical purpose of mining Bitcoin. Its barter accept historically been all-embracing mining operations incorporating thousands of machines alive twenty-four hours a day.
Ironically accretion antagonism back the development of ASIC mining rigs has hit the accumulation margins of mining apparel hard. Experts appraisal that mining acquirement in 2024 is aloof 37% of what it was in 2024. This downshift in mining profits led the worlds better architect of chips, Taiwan Semiconductor Manufacturing Corporation (TSMC), to cut it’s full-year sales target, citation ambiguity in the cryptocurrency bazaar as its reason.
In a Mining Boom Sell Shovels
These aforementioned factors could be the affidavit investors will buy into an IPO by Canaan, as the old aphorism goes the best way to accomplish money in a gold blitz is to advertise shovels. A affect common by Jehan Chu, managing accomplice at Kenetic Capital, a Hong Kong-based blockchain and cryptocurrency advance close who told Reuters,
“Investors are consistently attractive for crypto ‘picks and shovels’, and that’s what this is,”
Though crypto mining has been beneath austere authoritative burden by the Chinese government and beforehand rumors of Canaan’s proposed IPO had the dent maker attractive to Hong Kong or Singapore it seems they accept gotten approval to go advanced in the country. Last ages back China Securities Authoritative Commission vice-chairman Jiang Yang visited their branch and said publicly, “no amount what the dent is acclimated for, fundamentally you’re still a dent company, and I achievement you account in China,”
