Bitcoin Mines? Due to the strong global interest in cryptomites, two Chinese manufacturers specializing in bitcoin mining, Canaan Creative and Zhejiang Ebang Communication, are preparing to enter the Hong Kong Stock Exchange with the intention of raising $1 billion each.
Although the price of bitcoin has dropped 35% this year and Beijing has increased control over operations with cryptomoneda, manufacturers of bitcoin mining equipment need capital to finance growth, as increased interest in cryptomoneda has led to an increase in demand for their machines.
To this end, Canaan Creative submitted its application to the Hong Kong Stock Exchange to launch a public offering in July, while Zhejiang Ebang Communication began working with advisors for its stock market debut, according to the publication. from Thomson Reuters, IFR.
Canaan Creative and Zhejiang Ebang Communication
Canaan Creative , founded in Beijing (2013), sells «Avalon» mining computers and processors with super fast and customized ASIC chips. In 2017, revenues of 1.3 billion yuan ($203.8 million). According to the company’s vice president, Jianping Kong, Canaan is estimated to provide a quarter of the world’s bitcoin processing capacity. He also hopes China’s initiative to promote its domestic chip industry will help drive the company’s growth.
Credit Suisse, CMB International, Deutsche Bank and Morgan Stanley act as brokers at the IPO. Canaan’s IPO evaluation has yet to be defined due to the lack of comparable companies and fluctuations in crypt currencies. In mid-2017, the company was valued at about $500 million, according to a source quoted by IFR.
Zhejiang Ebang Communication is a high-tech company that integrates R&D, production, sales and services dedicated to data communication and fiber optic transmission systems, with a focus on blockchain and «Cloud computing».
Ebang debuted in 2015 on the China National Stock Exchange, but withdrew from the market this year after announcing in January its intention to go public in Hong Kong.
Other IPO attempts by companies specializing in bitcoin
Although many companies promote their links with bitcoin and, above all, with blockchain technology, few of the companies specializing in cryptomaps have so far gone public.
In Australia, DigitalBTC was made public in 2014 through a merger with Macro Energy, an investment group through a transaction that raised $9.1 million (about 5.7 million euros). The company later changed its name to DigitalX and transformed its focus from bitcoin to fintech software.
The Bitcoin Group abandoned its plans to go public in Sydney in 2016 after the local regulator questioned whether it had enough working capital to remain a solvent company.
In Canada, Leeta Gold, a mining company, renamed Hive Blockchain (HIVE.V) last summer and partnered with Hong Kong-based Genesis Mining at a bitcoin mining facility in Iceland. It has a market capitalization of $ 333 million.