Bitcoin mining equipment maker, Canaan Creative, on Thursday (November 15, 2018) allowed its Initial Public Offering (IPO) filing to elapse. Reports suggest that the company will shelve its IPO plans at least for the remainder of the year.
Canaan Allows $400 Million IPO Application to Lapse
Inside sources revealed that regulators from the HKEX had multiple issues with the company’s business model. Unless the Hangzhou-based Canaan refiles its IPO application along with updated financial information, the IPO might not happen again in 2018.
At the outset, Canaan’s projections for the public sale stood at $1 billion. However, the company revised its target, lowering it considerably to $400 million. This news comes amidst Wednesday’s drop that saw cryptocurrency prices fall by an average of 12 percent.
Canaan isn’t the only Bitcoin mining hardware maker planning a public sale. Both Ebang and industry behemoth, Bitmain also have pending IPO filing applications with the HKEX. An inside source told Reuters that Ebang’s IPO was unlikely to happen in 2018.
For Bitmain, the company continues to respond to questions from both the HKEX and Hong Kong’s financial regulator – the Securities and Futures Commission (SFC).
In August, Bitcoinist reported that Bitfury, another Bitcoin mining company also planned to pursue an IPO.
Hong Kong Pursuing Cryptocurrency Regulations
Meanwhile, in Hong Kong, recent reports suggest that financial regulators plan to pursue a more robust regulatory landscape for the local cryptocurrency industry.