Two major cryptocurrency mining machine manufacturers plan to IPO in Hong Kong, each raising $1 billion

According to IFR, a subsidiary of Reuters, Chinese cryptocurrency mining machine manufacturers Zhejiang Yibit and Canaan Creative plan to IPO in Hong Kong, raising US$1 billion each. According to sources, Canaan Creative has submitted its listing application to the Hong Kong Stock Exchange on Monday, and Zhejiang Yibit has also started working with consultants on its proposed listing arrangements.

This has once again attracted people's attention to Canaan Creative. If it is successfully listed, Canaan Creative will become the first blockchain company listed on the Hong Kong Stock Exchange.

According to public information, Canaan Creative was established in Beijing in April 2013. The company specializes in the design and sale of high-performance integrated circuit boards and is also the manufacturer of the Avalon series of cryptocurrency mining machines. In 2017, Canaan Creative completed its share reform and mass-produced 16nm artificial intelligence chips. It is understood that Canaan Creative has sold 50% of the global market share of 28nm and 16nm process chip equipment, and has sold about 160,000 Avalon series mining machines, accounting for 22% of the global cryptocurrency computing power market.

Official data from Canaan Creative shows that the company's unaudited net profit in 2017 exceeded 300 million yuan, while the company's profit in 2015 was only 2.24 million yuan, an explosive growth of 125 times in two years. Its market share ranks second in the country, second only to Antminer, a subsidiary of Crypto Mainland.

The founder of Canaan Creative is Zhang Nangeng, who is better known in the industry as "Pumpkin Zhang". In 2011, as a doctor of computer science from the Beijing University of Aeronautics and Astronautics, he designed a cryptocurrency mining machine (named Avalon) with a computing speed far exceeding that of a graphics card mining machine.

It is understood that Yibit is the digital currency mining machine brand of Ebang Co., Ltd., the world's third largest Bitcoin mining machine manufacturer listed on the New Third Board. Ebang Co., Ltd. is mainly engaged in data communication and chip design. Ebang Co., Ltd. started with communication equipment and is not a pure mining machine company. Zhejiang Ebang Communication Technology Co., Ltd. is a high-tech enterprise with data communication and optical fiber transmission systems as its leading products, integrating R&D, production, sales and services. The company is one of the main suppliers of access network equipment for the three major domestic operators.

If Zhejiang Yibit successfully lists on the Hong Kong stock market, Yibang shares will become a new "NEEQ+H" company.

The approval of the IPO of two major cryptocurrency mining machine manufacturers in Hong Kong reflects the policy-level attention to the blockchain industry and can effectively boost the development of the industry. From an international perspective, the listing of cryptocurrency mining machine manufacturers will further enhance the competitiveness of my country's blockchain industry and improve its independent innovation capabilities.