according toReutersaccording to
Reuters
Citing people familiar with the matter, Canaan, a maker of cryptocurrency mining machines that submitted plans to list in Hong Kong in May, lowered its funding target to at least $400 million from $1 billion earlier this year.
Canaan Zhizhi’s adjustment of IPO fundraising this time seems to be proving people’s conjectures to a certain extent: a series of factors such as the downward trend of digital currency, a single product line and an uncertain transformation path, and tightening regulatory policies are all intensifying. The risk of miners on the road to listing.datadatadata, Bitcoin is currently trading at $6,729, down 64% from its December 2017 peak of $18,690. The butterfly effect brought about by the bear market is that the profitability of the mining industry itself is also declining. According to data analysis and wallet provider Blockchain.info
data
, daily mining revenue fell 77% from December last year.
And it's not just the price of bitcoin that's causing concern, with people familiar with the IPOs saying regulatory scrutiny and the poor performance of Hong Kong IPOs this year are other concerns."Risk Tips on Preventing Illegal Fundraising in the Name of "Virtual Currency" and "Blockchain""In January this year, the Office of the Leading Group for the Special Rectification of Internet Finance notified all localities to gradually withdraw virtual currency mining companies. Recently, the five ministries and commissions jointly issued
"Risk Tips on Preventing Illegal Fundraising in the Name of "Virtual Currency" and "Blockchain"", Heavy strikes on illegal fund-raising behaviors related to the hype of digital currency and blockchain concepts. As the upstream of the digital currency industry chain, the sword of supervision is always hanging over its head, and once it becomes a listed company, it will also face stricter audits.Together with the decline in the price of cryptocurrencies, there are
Market Sentiment for Hong Kong StocksThis is evidently confirmed by Xiaomi, a technology company whose valuation has fallen from an earlier $100 billion to $53.4 billion.In addition to Canaan, which has lowered its fund-raising target, the life of Bitmain, which has been plagued by controversy recently, is not easy: in August this year, it was rumored that Tencent and Softbank invested in Pre-IPO financing, and then came forwarddenyDeep in the BCH crisis
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