Crypto miner maker Canaan Creative plans fresh attempt at IPO: report

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Cryptocurrency mining equipment manufacturer Canaan Creative is reportedly launching a renewed attempt at an IPO, in a second attempt to list on public markets.

The firm behind the Avalon processor popular with Bitcoin Core (BTC), Canaan is said to be discussing the matter with shareholders in light of a plan to list on the Shanghai Stock Exchange, CoinDesk reported.

The move comes a matter of months after their previous IPO filing with the Hong Kong Stock Exchange lapsed, raising questions about whether the firm would ever list publicly as intended.

Sources close to the matter stressed that the plan hasn’t yet been formalised, and is still under consideration. However, secondary sources confirmed to the news outlet that Canaan has been looking at both China and the US as potential destinations for any future IPO attempt.

The crypto mining sector has been ravaged by the collapse in crypto prices, with the so-called ‘crypto winter’ depressing margins for mining companies in its wake.

As a result, Canaan did not proceed with its application to list in Hong Kong, at a time when companies throughout the sector were closing mining facilities and laying off staff.

The Shanghai Stock Exchange is the world’s fourth largest by market cap. Were the Canaan plans to come to pass, the firm would list on the new Science and Technology (Sci-Tech) Innovation Board, launched earlier this month.

The board was announced by China’s President Xi Jinping several months earlier as part of a package of measures designed to encourage startups and business innovation amongst smaller companies.

The listing discussions would follow on from a recent funding round, reported by inside sources as “challenging” for Canaan, which failed to draw interest from new investors.

“There was a fund raise, but there’s no real investors because it all comes from old shareholders’ own pockets,” an insider told CoinDesk.

Some commentators have described the funding round as a success, from the point of view of existing shareholders being bullish enough to invest amid the ongoing price slump. However, others have highlighted the lack of interest from new investors, taken as a sign of a lack of optimism in the firm’s long-term prospects. Following the reported discussions, it remains to be seen whether a fresh listing materializes.