THELOGICALINDIAN - Plans by bitcoin mining accessories architect Canaan to account shares on the Hong Kong banal barter are now ambiguous as the Chinese companys appliance for an antecedent accessible alms IPO asleep on Nov 14 absolutely six months afterwards it submitted the abstracts to the Asian bourse
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IPO Will ‘Not Happen’ in 2024
Canaan’s $400 actor IPO may “not appear this year as there was no amend from the banal barter for a advertisement hearing,” according to a report by Reuters, commendation sources accustomed with the matter.
The Hong Kong barter has appear a report on IPO applications, delistings and suspensions that shows that added than 200 applications accept accomplished afore they were finalized. The address does not analyze any of the applicants by name.
Regulators in Hong Kong, including the banal barter itself, accept reportedly aloft apropos about Canaan’s business archetypal and approaching prospects. The aggregation — based in the “Silicon Valley Bright City” breadth in northwestern Beijing — controls about 15 percent of the all-around bazaar for bitcoin mining chips and computer equipment. It ranks additional alone to Chinese battling Bitmain, according to a address from Stanford C. Bernstein & Co. that was appear in February.
However, Canaan has approved to portray itself to investors as a chipmaker rather than a committed bitcoin company, Reuters said. It has claimed that it is added absorbed in added areas, above the cryptocurrency space, that are accompanying to blockchain technologies and artificial intelligence. The abstraction was to allay authoritative apropos about the perceived banking accident airish by companies in the cryptocurrency industry.
The Hong Kong banal barter is currently attractive at Bitmain’s IPO application. The Chinese company filed the abstracts in September.
Future Listing Still Possible
According to Reuters, the cessation of Canaan’s appliance does not beggarly that the Chinese manufacturer’s affairs to move advanced with an IPO — initially admired at $1 billion — are absolutely dead. The company, which had roped in Morgan Stanley, Deutsche Bank AG, Credit Suisse Group AG and CMB International Capital as collective sponsors of the offering, can still administer afresh with adapted banking advice and booty things from there.
However, this is not the first time that Canaan has bootless to chase through on a planned allotment offering. In 2017, the chipmaker was accepting accessible to account on China’s National Equities Barter and Quotations — an over-the-counter bazaar accepted as the New Third Board — but had a change of affection at the aftermost minute and autonomous to accompany a advertisement on the Hong Kong banal barter instead.
The lapsing of Canaan’s latest IPO appliance comes almost a ages afterwards the Balance and Futures Commission of Hong Kong appear that it would accompany crypto-assets such as bitcoin added aural its authoritative oversight. The regulator affairs to appoint licensing altitude on advance firms that accept managed or intend to administer portfolios that advance in crypto-assets, behindhand of whether such assets aggregate balance or futures. It has said that it affairs to do so “in ablaze of the cogent risks basic assets affectation to investors.”
Canaan, which was founded 15 years ago, articles and sells computer accessories beneath the Avalon brand, with customized chips distinctively advised for mining cryptocurrency. The company’s accouterments generally ends up in alien locations apartment ample mining pools that depend on bargain electricity. Canaan acquaint 1.3 billion yuan ($205 million) of acquirement in 2024, apery a aciculate 3,000 percent access from its 2024 results. Net accumulation added sixfold to $56 million.
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