A listed company plans to acquire Avalon's parent company for 3 billion, setting a new record in the blockchain field

Canaan Creative, the company behind the first ASIC bitcoin mining chip in history, has been acquired by a public company in what is by far the largest deal in the blockchain sector.

According to Phoenix.com, listed company Luyitong plans to issue 81.379 million shares at 24.57 yuan per share in a private placement and pay 1.06 billion yuan in cash, with a total price of 3.06 billion yuan (466 million US dollars) to acquire 100% of Canaan Creative's equity. At the same time, the company plans to issue no more than 67.97 million shares at 24.57 yuan per share in a private placement, raising no more than 1.67 billion yuan, which will be used to pay the cash consideration for this transaction, build blockchain ASIC chip industrialization projects, artificial intelligence ASIC chip R&D centers, chip product marketing and service networks, intelligent electrical equipment system solution R&D and industrialization projects, and intelligent grid inspection and information system R&D centers.

Jihan Wu, CEO of mining company Bitmain, tweeted that Canaan Creative was going public through its relationship with Shandong Luyitong, and that it would receive 670 million RMB in financing, with a total valuation of approximately 3.1 billion RMB.

Canaan representatives did not provide further details, saying they could not disclose more information at this time.

Canaan Creative was founded in 2012 and released its first Avalon chip in 2013. The Avalon chip was also the first application-specific integrated circuit (ASIC) chip designed for Bitcoin mining.

At present, Canaan Creative has not officially announced the transaction through its social media channels, and Shandong Luyi Tong did not immediately respond to the reporter's request for comment.