No IPOs, Major Crypto Mining Tech Companies Focus on Product Innovation
Falling demand for miners in the cryptocurrency industry has forced crypto mining hardware companies to become more creative. This is as hashrates reach new highs and digital currency prices maintain a bearish outlook, making mining less profitable for less efficient participants. Going by recent reports, three of the biggest cryptocurrency mining hardware manufacturers, Bitmain, Canaan Creative and Zhejiang Ebang were planning on launching IPOs. A successful listing would serve as a litmus test of investor confidence, and inject much-needed capital into the companies. They’ll need it to diversify their offerings. Bitmain was allegedly aiming for a $3 billion funding through its IPO, with a market capitalization target of about $40 to $50 billion on the Hong Kong Stock Exchange. The company currently dominates the ASIC hardware market, with its market-share estimated to be between 70 and 80 percent. In May, Canaan Creative, the second biggest bitcoin mining hardware maker in the world after Bitmain, was also rumored to be working on a $2 billion IPO. The company’s profits rose to 361 million yuan ($56.67 million) last year, but the skyrocketing costs of mining have pushed sales to new lows. In Zhejiang Ebang’s case, the Chinese manufacturer filed an IPO application in June, which it has yet to finalize. According to a previous Reuters report, the company was looking to raise at least $1 billion through the IPO. It is worth noting that none of the three companies have so far launched IPOs or formally confirmed them. This may be a wise move, considering that the market is still in a bearish mood. However, they are focusing more on product innovation, which seems to be the more logical option to maintain demand.
