After months of lull in the crypto mining space, this space is again generating interest among investors. Canaan Creative, world’s second largest bitcoin mining chipmaker has raised several hundred of millions dollar in a new funding round.
Chinese financial news publication house, Securities Times has reported on Monday that the new funding has been made at an attractive valuation of the firm at over $1 billion. The news comes months after the company shelved plans to list its shares through IPO on the Hong Kong Stock Exchange. The company now is planning to list the shares in New York but has not moved forward with any concrete steps.
This latest funding effort is a much needed positive news for the industry amid declining cryptocurrency market rates, profitability and mass-employee layoffs.
Canaan has not come forward with any details plan regarding utilisation of fund and is also difficult to estimate the nature and the purpose of Canaan’s private funding round. At the end of Q2,2018, Canaan’s valuation was close to $2.98 billion, but its current valuation is not known and also the firm has not posted the financial reports for fiscal 2018.
Canaan’s rivals such as Bitmain and Ebang, both are struggling with decreased profitability, shutdowns and massive employee layoff. Both the firms are struggling to keep up with their IPO plans owing to the ongoing crypto bear market.
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