Canaan Crypto Mining ASIC Manufacturer Secures “Hundreds of Millions of Dollars” in Financing Round
One of China’s biggest ASIC producers has secured a significant financing round, while the crypto world awaits for updates on the fate of the Bitmain IPO.
Canaan Mining, one of China’s biggest producers of specialized cryptocurrency mining equipment, has secured “hundreds of millions of dollars in financing”, sources close to the company said. This values Canaan in the “billions of dollars” in terms of total market capitalization, reported STCN.
The funding arrives during a difficult time for Canaan, as previous plans to be listed on the Hong Kong stock exchange fell through. Still, the ASIC producer boasts of rising sales, especially in the 2015-2017 period.
The funding is a sign that the Chinese cryptocurrency mining sector remains at least somewhat attractive. The coming days will show if the Bitmain initial public offering (IPO) will have a chance at a breakthrough. Bitmain is scheduled to release the Q3 official earnings report around March 26, with rather bleak results expected.
Still, Chinese ASIC production and the demand for mining seem to be growing. Bitcoin’s hashrate remains robust, with the expectation of further growth during the rainy season in China. The recent launch of the Z11 mining device by Bitmain also shows that mining is here to stay, seeking new markets with altcoins that still have a low hashrate and leeway to add more miners.
China is a controversial participant in the crypto market. After the ban of domestic ICOs and mainland-based exchanges that trade fiat for cryptocurrencies, Chinese traders did not disappear, but moved to offshore exchanges such as Binance and OKEx.
At the same time, LocalBitcoins activity in China remained robust. Additionally, Coinlib data show that the Chinese yuan is making inflows into crypto trading. Previously, the CNY was among the most active fiat currencies on the market, before the Chinese government cracked down on exchanges in September 2017.
Based on the information for inflows of crypto assets in various currencies, as of Wednesday, the Chinese yuan was the third largest currency, after Tether (USDT) and the US dollar. More than $150 million’s equivalent flowed into Bitcoin (BTC), and around $68 million’s equivalent into Ethereum (ETH).