Canaan Creative: plans for 2020

Judy Rubio

The US SEC received Canaan Creative’s application to conduct an IPO (more details can be found in "What is IPO?" article).  Number of sources report the mining manufacturer has performed all procedures needed for the initial public offering. By entering the market, they get a chance to attract about 400 million dollars.

Canaan Creative seeking investors

We will remind you that the company has already been looking for investors for three years. Now it is approaching the public organization status. Chinese companies Bitmain and Ebang have already been assigned to the status.

Canaan’s top manager Kong Jianping stated that the SEC is well aware of cryptocurrency principles and blockchain technology. Therefore, businesses in this area have high chances of obtaining public status in the United States.

Prior to that, Chinese major mining equipment manufacturers were planning to list their securities on a stock exchange in Hong Kong. The first attempt was unsuccessful. Though, the situation has changed after demand for cryptocurrency mining equipment saw a significant increase.

Canaan Creative plans for 2020 

Chen Feng, the company's head of sales, reported that Canaan already has pre-orders for A10 and A11 mining equipment in the amount of half million. The forecasts estimate the demand for such equipment will exceed 1 million in 2020. The company itself has not released any official comments regarding the IPO.

Canaan Creative was incorporated in 2013. It was the first one on the market to develop and manufacture the Avalon Miner using advanced ASIC chips with increased working speed. This has affected the video card mining at once.

Canaan Creative reported of making the following profits:

  • 2015 – 13.88 million yuan ($2 million)
  • 2016 – 132 million yuan ($19 million)
  • 2017 – 604 million yuan ($88 million) 

The manufacturer sold almost 295 thousand bitcoin-miners, which exceeds a fifth of the global market for mining equipment (according to 2017 data). It accounted for 19.5% of the world’s hashrate. The company has reached second place in the world by this indicator.

In 2018 Canaan Creative announced the development of ASIC based on 7-nm technology. At the same time, it was able to record the revenue of 4 billion yuan, which corresponds to 560 million dollars.

Other attempts of listing on the stock exchanges

In 2016 Canaan Creative aimed to be listed on the Shenzhen stock exchange. Though, the plan had to be cancelled due to company’s non-compliance with regulatory requirements. In summer, 2017, Canaan Creative sent NEEQ an application for listing. In March 2018 it was withdrawn.

Canaan Creative's increasing production requires additional capital for expanding its activity. That is why the mining manufacturer is seriously intended at holding an IPO in 2020. First of all, it applies to the American NASDAQ exchange. Do not miss your chance to purchase the company’s stocks in case it succeeds.