Largest Ever Acquisition In Bitcoin Mining Industry
The Bitcoin industry is dynamic and is experiencing a lot of changes. While the industry itself is pretty new, reports of largest ever takeover in the bitcoin mining industry has surfaced. Canaan Creative, the China-based manufacturer and maker of first-ever Application-Specific Integrated Circuit (ASIC), has been acquired by Shandong Luyitong Intelligent Electric PLC. Canaan Creatives was founded in 2012 by N.G. ZHANG, who is also the CEO of the company. They produce Blockchain solutions and servers for ASIC.
Canaan Creative are producers of ASIC Avalon, the first ever ASIC created for mining bitcoins. There are also other Bitcoin Companies producing ASICs in addition to Canaan. Mining is a process by which transaction blocks are created on the network. The Avalon chip was released by Canaan Creatives to the market in 2013.
Although the exact amount paid in acquisition is still under wraps, it is said to be the largest ever acquisition of a bitcoin company. The company that acquired Cannan Creatives, Shandong Luyitong Intelligent Electric PLC is an electronic firm in China. They manufacture electric equipment and apparatus. Shandong Luyitong was founded in 2003. It is listed in Shenzhen Stock Exchange.
According to lfeng.com, Shandong Luyitong paid approximately $466 Million to acquire Canaan Creative. $466 Million was paid in cash and in stock to acquire 100% stake of Canaan Creatives. It also looks like Shandong Luyitong is planning to sell about 6.79 billion shares for ¥24.57 per share. In a twitter post, Jihan Wu, who co-founded Bitman, another Chinese Bitcoin firm confirmed the news that Avalon will be publicly listed and 0.67bn RMB is to be raised at a valuation of 3.1 bn.
Neither Canaan Creatives nor Shandong Luyitong were available to confirm the news. Canaan informed that they are not in a position to divulge any further insights or information about the supposed acquisition. There are no announcements in print or social media made by Canaan or by Shandong Luyitong. The acquisition, however, was confirmed via email by Canaan Creatives to CoinDesk.