Canaan’s Hong Kong Listing Plans in Limbo

Neutral Canaan’s Hong Kong Listing Plans in Limbo

Plans by bitcoin mining equipment manufacturer Canaan to list shares on the Hong Kong stock exchange are now uncertain, as the Chinese company's application for an initial public offering (IPO) expired on Nov. 14 - exactly six months after it submitted the documents to the Asian bourse. Also Read: Bitcoin ATMs Most Common Scam Payment Method in Australia

IPO Will 'Not Happen' in 2018

Canaan's $400 million IPO may "not happen this year as there was no update from the stock exchange for a listing hearing," according to a report by Reuters, quoting sources familiar with the matter. The Hong Kong exchange has released a report on IPO applications, delistings and suspensions that shows that more than 200 applications have lapsed before they were finalized. The report does not identify any of the applicants by name.

Regulators in Hong Kong, including the stock exchange itself, have reportedly raised concerns about Canaan's business model and future prospects. The company - based in the "Silicon Valley Bright City" area in northwestern Beijing - controls approximately 15 percent of the global market for bitcoin mining chips and computer equipment. It ranks second only to Chinese rival Bitmain, according to a report from Stanford C. Bernstein & Co. that was released in February.

However, Canaan has tried to portray itself to investors as a chipmaker rather than a dedicated bitcoin company, Reuters said. It has claimed that it is more interested in other areas, beyond the cryptocurrency space, that are related to blockchain technologies and artificial intelligence. The idea was to assuage regulatory concerns around the perceived financial risk posed by companies in the cryptocurrency industry.

The Hong Kong stock exchange is currently looking at Bitmain's IPO application. The Chinese company filed the documents in September.

Future Listing Still Possible

According to Reuters, the expiration of Canaan's application does not mean that the Chinese manufacturer's plans to move forward with an IPO - initially valued at $1 billion - are completely dead. The company, which had roped in Morgan Stanley, Deutsche Bank AG, Credit Suisse Group AG and CMB International Capital as joint sponsors of the offering, can still apply again with updated financial information and take things from there.

However, this is not the first time that Canaan has failed to follow through on a planned share offering. In 2017, the chipmaker was getting ready to list on China's National Equities Exchange and Quotations - an over-the-counter market known as the New Third Board - but had a change of heart at the last minute and opted to pursue a listing on the Hong Kong stock exchange instead.

The lapsing of Canaan's latest IPO application comes barely a month after the Securities and Futures Commission of Hong Kong announced that it would bring crypto-assets such as bitcoin further within its regulatory oversight. The regulator plans to impose licensing conditions on investment firms that have managed or intend to manage portfolios that invest in crypto-assets, regardless of whether such assets constitute securities or futures. It has said that it plans to do so "in light of the significant risks virtual assets pose to investors."

Canaan, which was founded 15 years ago, manufactures and sells computer equipment under the Avalon brand, with customized chips specially designed for mining cryptocurrency. The company's hardware often ends up in remote locations housing large mining pools that depend on cheap electricity. Canaan posted 1.3 billion yuan ($205 million) of revenue in 2017, representing a sharp 3,000 percent increase from its 2016 results. Net profit increased sixfold to $56 million.

What do you think about Canaan's listing prospects? Let us know in the comments section below. Images courtesy of Shutterstock. The Bitcoin universe is vast. So is Bitcoin.com. Check ourWiki, where you can learn everything you were afraid to ask. Or read our news coverage to stay up to date on the latest. Or delve into statistics on our helpful tools page

Jeffrey Gogo is an award winning financial journalist based in Harare, Zimbabwe. A former deputy business editor with the Zimbabwe Herald, the country's biggest daily, Gogo has more than 15 years of wide-ranging experience covering Zimbabwe's financial markets, economy and company news. He first encountered bitcoin in 2014, and began covering cryptocurrency markets in 2017

11/15/2018 / 18:05:41 Source: bitcoin.com

BTC
1 BTC=$3,287.52
XRP
1 XRP=$0.2932
ETH
1 ETH=$87.44
XUC
1 XUC=$2.11
EOS
1 EOS=$1.98
BCH
1 BCH=$79.56

News Feed 50

Bitcoin.Com Neutral - The Daily: Trump Chooses Bitcoin Advocate as Chief of Staff, Congressman Proposes Wall Coins read more.
12/16/2018 / 13:05:59
Themerkle Positive - IOTA Price Jumps by 8% and Seeks Support at $0.23 read more.
12/16/2018 / 12:49:32
Cryptocoremedia Neutral - XRP vs Bitcoin (BTC): Which is More Decentralized? Or More Secure? read more.
12/16/2018 / 12:49:05
Cryptoglobe Negative - WAVES Has Risen 72% so Far This Month, Bucking the Bearish Trend read more.
12/16/2018 / 12:30:22
Blokt Neutral - TRON Releases Dapp Weekly Report: Two Tron-based Decentralized Exchanges Launched read more.
12/16/2018 / 12:29:28
Newsbtc Neutral - Facebook Blockchain Arm Booms, Even Amid Crypto Bear Market read more.
12/16/2018 / 12:00:44
Bitcoinist Neutral - Litecoin ‘Flappens’ Bitcoin Cash By Market Capitalization read more.
12/16/2018 / 12:00:04
Coinspeaker Neutral - On the 6th Day of Christmas Coinbase Gave Bitcoin to Syrian Refugees read more.
12/16/2018 / 11:07:56
Bitcoin.Com Neutral - Chatter Report: Zhuoer Claims BSV Block Created ‘Accidentally’, Falkvinge Likens Code Review to ‘Legislation’ read more.
12/16/2018 / 11:05:27
Coindesk Neutral - Exchanges, Startups Pick Sides After the Bitcoin Cash ‘Hash War’ read more.
12/16/2018 / 11:00:57
Cryptoglobe Neutral - Kaspersky: 13 Million Cryptojacking Incidents in 2018, up 400% From Last Year read more.
12/16/2018 / 11:00:06
Livebitcoinnews Neutral - Crypto Millionaire Tosses Money from a Roof in Hong Kong read more.
12/16/2018 / 11:00:02
Newsbtc Neutral - Bitcoin Development Not Controlled by Anyone Says Crypto Veteran read more.
12/16/2018 / 10:57:28
Ccn Neutral - The Venezuelan Government is Forcing Petro Down the Pensioners’ Throats read more.
12/16/2018 / 10:55:24
Cryptoglobe Neutral - #Bitcoin (BTC) Long-term Price Analysis – December 16 read more.
12/16/2018 / 10:15:28
Coindesk Neutral - Coinbase and the Awkwardness of Growing Up read more.
12/16/2018 / 10:15:26
Cryptopotato Negative - November Recorded the Worst Month For ICOs read more.
12/16/2018 / 09:40:37
Cryptoglobe Neutral - Russia Backs Away From Commitment to Trade in Venezuela's Petro Crypto, for Now read more.
12/16/2018 / 09:30:42
Ccn Neutral - Waves Surges into Top 20 Coins as Wider Crypto Market Stumbles read more.
12/16/2018 / 09:09:34
Bitcoin.Com Neutral - CEO of Romanian Exchange Coinflux Arrested on US Warrant read more.
12/16/2018 / 09:05:59
Newsbtc Neutral - Bitcoin Bomb Threats Strike Hong Kong After Debacle In U.S., Canada read more.
12/16/2018 / 08:06:15
Livebitcoinnews Neutral - Facebook Building Its Blockchain Unit, May Develop a New Cryptocurrency read more.
12/16/2018 / 08:00:06
Themerkle Neutral - Bitcoin, XRP, Ethereum Price in the Green. Litecoin and BitcoinSV Leading With 8% Gains read more.
12/16/2018 / 07:31:19
Ccn Neutral - French Financial Watchdog Blacklists More Cryptocurrency Websites read more.
12/16/2018 / 07:16:09
Coinnounce Neutral - 1.3 million Bitmain S9 miners turned off: Bitcoin Mining no longer profitable read more.
12/16/2018 / 05:47:11
Cryptonewsreview Neutral - SolarisBank teams up with German exchange Boerse Stuttgart Group to form crypto exchange read more.
12/16/2018 / 05:43:59
Livebitcoinnews Neutral - Startup Owners Still Invest in Crypto, but They Don’t Believe in It read more.
12/16/2018 / 05:31:34
Cryptonewsreview Neutral - A separatist nation in Cameroon has created its own nation-backed cryptocurrency read more.
12/16/2018 / 05:24:42
Themerkle Neutral - Tesla Owner Successfully Dual-boots Linux and TeslaOS read more.
12/16/2018 / 05:17:37
Newsbtc Neutral - Bitcoin Price Weekly Analysis: BTC’s Short Term Rebound Likely read more.
12/16/2018 / 05:00:02
Coinnounce Neutral - Ethereum Miners are the best targets for Hackers, ETH mining is not profitable read more.
12/16/2018 / 04:54:36
Cryptonewsreview Neutral - Binance has released the first set of blockchain initiatives backed by its Incubation Program read more.
12/16/2018 / 04:53:01
Coinnounce Neutral - #Ethereum Price Analysis: ETH falling to $55? read more.
12/16/2018 / 04:52:09
Newsbtc Neutral - Ethereum Price Weekly Analysis: Upsides in ETH Remains Capped Near $98 read more.
12/16/2018 / 04:08:39
Cryptoinsider Neutral - Timothy C. May: A Tribute read more.
12/16/2018 / 04:05:51
Bitcoin.Com Neutral - BCH-Based Openswap Client Will Feature Trustless Atomic Swaps read more.
12/16/2018 / 03:35:59
Themerkle Neutral - Ethereum’s ProgPoW May Trigger Major Market Movements if Implemented read more.
12/16/2018 / 03:15:19
Cryptoglobe Neutral - Strong Ethereum Numbers Indicate Platform’s Staying Power Amid Crypto Winter: Consensys read more.
12/16/2018 / 03:00:14
Cointelegraph Neutral - Business Models Should Be ‘Re-Imaged’ for Blockchain, Says Barclays Rep read more.
12/16/2018 / 02:53:00
Ccn Neutral - Romanian Bitcoin Exchange CEO Helped Launder Stolen Funds: Report read more.
12/16/2018 / 02:30:05
Ccn Neutral - ‘Wasteland’ Director’s New Blockchain Gaming Store Signs up 22 Publishers read more.
12/16/2018 / 01:10:17
Ccn Neutral - Facebook Aggressively Hiring Blockchain Devs, Discussed Launching Cryptocurrency: Report read more.
12/16/2018 / 00:01:37
Bitcoin.Com Neutral - Switzerland to Relax Laws to Accommodate Blockchain and Cryptocurrency Startups read more.
12/16/2018 / 00:00:27
Cryptoglobe Neutral - France's Watchdog Warns Against Fraudulent Crypto and Diamond Investment Schemes read more.
12/15/2018 / 23:00:36
Themerkle Neutral - Is This the End of Crypto? read more.
12/15/2018 / 22:56:43
Cointelegraph Neutral - Blockchain Payments’ Mass Adoption Is 3-5 Years Away, Says BitPay CEO read more.
12/15/2018 / 22:53:00
Ccn Neutral - Downturn or Not, Bitcoin Has Still Outperformed Apple Since Last January read more.
12/15/2018 / 22:30:08
Cryptonewsreview Neutral - A brand new wallet for Android reviewed read more.
12/15/2018 / 22:21:11
Bitcoin.Com Neutral - Monitor Bitcoin Cash Development With the Coin Dance Tracking Page read more.
12/15/2018 / 22:00:43
Cointelegraph Neutral - Top Cryptos See Mixed Gains & Losses, Bitcoin Fights to Stay Over $3,200 read more.
12/15/2018 / 21:31:00
Negative
4.3%
Neutral
94.4%
Positive
1.0%
Mixed
0.2%

Latest comments:

4 min
Hey Sam, how is it going? But I must explain to you how all this mistaken idea of denouncing of a pleasure and praising pain was born
3 min
Pretty good. Doing my homework.. No one rejects, dislikes, or avoids pleasure itself, because it is pleasure, but because
2 min
Any chance to go out? To take a trivial example, which of us ever undertakes laborious physical exercise, except to obtain some advantage
2 min
.. Maybe 40-50 mins. I don't know exactly. On the other hand, we denounce with righteous indignation and dislike men who are so beguiled
1 min
Anyway sounds great! These cases are perfectly simple and easy to distinguish.