Home Capital & Crypto Chinese Bitcoin Mining Firm Canaan Acquired for $422 Million

Chinese Bitcoin Mining Firm Canaan Acquired for $422 Million

Samburaj Das
Last Updated March 4, 2021 4:49 PM
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Chinese bitcoin mining firm Canaan Creative (more commonly known by its brand Avalon), is being acquired for a reportedly princely sum of ¥3.06bn, approximately $466 million.

It makes for a notable business deal in the bitcoin mining industry, perhaps the most notable yet. Beijing-based Canaan Creative, known for its bitcoin mining chip brand Avalon is being acquired for a reported ¥3.06bn (approximately $466 million) in what clearly sets a milestone as the biggest acquisition in the industry to date.

Canaan Creative will be acquired as a whole by electronics manufacturer Shandong Luyitong (LYT), in a cash and stock deal, according to rumors.

N.G. Zhang, Founder and CEO of Canaan Creative confirmed the speculation on the firm’s website, stating:

Yes, it is true. Canaan is being acquired by LYT, an electronics company. This deal is a vote of confidence in the three years of products and services we invented and released.

This acquisition and investment provides us the necessary resources and autonomy to make even better products and innovations that our customers expect.

The major acquisition comes during a time when the bitcoin block reward halving is fast approaching, an event which is now less than 40 days away.

While details remain scarce, Zhang added that the 100-strong and “growing” team of employees at Beijing-based Canaan will continue to work on new products. This implies that Canaan’s staff will presumably remain with their jobs whilst acquired by LYT.

While the Chinese bitcoin mining firm enjoys a new boost of investment and backing with its acquisition, other bitcoin miners haven’t been as fortunate, ahead of the halving. In anticipation of the halving event, Swedish bitcoin mining firm KnCMiner declared bankruptcy toward the end of May. The company had reportedly laid off workers and was in the process of winding down operations in the months leading up to the upcoming halving. The firm will close its mining operations by July 10th.

Earlier in May, Israeli bitcoin mining equipment manufacturer Spondoolies-Tech also announced that it would shut down operations that month after payroll concerns amid a lack of interest from creditors. Notably, fierce competition by Chinese bitcoin hardware manufacturers was seen as the reason for Spondoolies-Tech’s curtain call.

A representative for Canaan Creative was not immediately available for comment at the time of publishing. CCN.com will report on this story as more details emerge.

Featured image from Canaan.