Co-Founder of Canaan Creative Steps Down Ahead of IPO

Canaan is trying to list itself in the US-based stock exchanges.

One of the co-founders of Chinese crypto mining rig manufacturer Canaan Creative separated from the company amid disagreements over the company’s future, according to a Coindesk report.

Xiangfu Liu, a co-founder of Canaan, was a board member of the company. However, the updated government business data shows that he is no longer holding that position.

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According to Coindesk, his separation from the firm was fueled by several disagreements on the firm’s future business model.

Unlike Bitmain, Canaan, which is China’s second largest Bitcoin mining rig manufacturer, does not mine cryptocurrencies and solely relies on the sale of its product for revenue. Liu, however, wanted the company to diversify its business and delve into cryptocurrency mining activity. He believed that hardware and software should not be separated entirely in the blockchain industry.

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However, Canaan’s management was against this approach and wanted to maintain the status of a pure manufacturer of mining chips to showcase the firm’s sustainability for an initial public offering (IPO), as per Coindesk.

In 2013, Liu along with Nangeng Zhang and Jiaxuan Li founded Canaan Creative. The company designs and manufactures high-performance ASIC-based miners for Bitcoin mining and is well know for the Avalon series of Bitcoin mining machines.

Liu was also responsible for the company’s business strategy and marketing.

Liu will continue to hold his shares of the company, which amount to around 17.6 percent of the company’s total stocks. The three founders together hold a little more than 50 percent of the company.

Will It Go Public?

Canaan has been pushing for an IPO listing for a while now. After a failed attempt on the Hong Kong stock exchange, where its application lapsed, the firm is now going for US exchanges to get publically listed.

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