BEIJING, China – The market share of the ASIC miner of Canaan Creative increased to 22% from its 6%-standing in the recent two years.
Canaan Creative, a renowned cryptocurrency in China, had its company publicized in the previous month. Along are people with vast high hopes for the said company to succeed. Some names in the cryptocurrency field, particularly the top competitor Bitmain, didn’t succeed. On the other hand, the company didn’t have too much in the path of development. It’s since the stock price sustained to fall in the result of being publicized.
As per MISSLIN Quentin’s tweet, she shared that Canaan was able to gain $90 million, based on its Initial Public Offering (IPO). The company sold 10,000 shares, wherein each share costs $9. This price is approximately 75% lesser than $400 million. Primarily, it was hoped for it to increase after the company announced the IPO plans.
One of the most significant backing factors to this drop was the loss of Canaan Creative’s largest funding partner, which is Credit Suisse. This partner was chosen a week before the trade happened. The company quickly made alterations to the filing. It submitted a new deal, which didn’t state Credit Suisse, and it presented an anticipated income haul worth $100 million.
The 13 of Canaan Creative’s 17 exchange sessions that transpired since it was publicized, the stock jumped expressively. Solely this week, the stock price dropped an additional 35%.
The drop-in Canaan Creative’s stock price is approaching after the value of Bitcoin is decreasing daily. Data obtained from CoinMarketCap displays that the famous cryptocurrency slumped 4.8%. This cryptocurrency is exchanging well, wherein it’s below the comfort point now worth $7,000. It also dropped consistently when the month started. Furthermore, the hope for this asset to be finished the $10,000 threshold for the year is now declining.
Bitcoin’s drop is being blamed. The decrease in this cryptocurrency’s value affected mining businesses, wherein Canaan Creative is not the sole one who’s trying urgently to fix it. Bitmain, which is still the trade leader, announced numerous initiatives to boost sales. It includes leasing out the company’s second-tier products, and it’ll be under the profit-sharing deals. Moreover, offering limited price is assured to purchasers who purchase by bulk.
As the price of Bitcoin diminishes, and the asset is less gainful to mine nearly every day, cryptocurrency miners are beginning to get suspicious about purchasing mining rigs. These companies are starting to understand that the situation might head for the same terrible funding happening, which they experienced in the year 2018.
Blockchain data presents that the hash rate standing is at 100.4 million TH/s, which is a little lesser than the reigning 114 million TH/s.
Next year, Canaan Creative is scheduled to unveil the AvalonMiner 11 series. However, analysts anticipate it to be less power-effective than the existing Bitmain s17+ model. If the price drop of Bitcoin stretches on, purchasers might be more incentivized to obtain mining rigs with reduced power output. Moreover, it will charge less. On the other hand, there’s only a level that purchasers can take before putting the mining rigs altogether.