Chinese Bitcoin Mining Developer Canaan Acquired for ¥3 Billion

In what is likely the biggest acquisition in the short history of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term related firms, a mining equipment developer has been sold to an electronics manufacturer in China.

N.G. Zhang, the founder and CEO of Beijing-headquartered Canaan Creative CO., LTD, has confirmed on the company's website: "Yes, it is true. Canaan is being acquired by LYT." He did not offer many details on the deal with the industrial and commercial electronics manufacturer but media reports from China suggest that it was a very big one.

LYT reportedly agreed to pay about two billion yuan in stocks and 1.06 billion yuan in cash, for a total price of 3.06 billion yuan (about $466.2 million) to acquire a 100% stake in Canaan.

Vote of confidence

Founded in 2012, Canaan was the very first commercial producer of ASIC (application-specific integrated circuit) for Bitcoin mining. Its latest offering, the Avalon6, offers a hashing power of 3.7THS@500MHz.

Mr. Zhang commented: "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. Canaan’s expertise as an integrated circuit (IC) design company is strengthened.

These are big times for the blockchain, technology and innovation in the world...And, we are not finished! We have new products and innovations coming, deeper than integrated circuits and beyond the blockchain."

This move exemplifies how much mining hardware producers (and large scale commercial miners) are supported in China by the wider business community. In contrast, just last month Israeli Bitcoin mining equipment producer Spondoolies-Tech was shut down after it could not raise enough credit and funding to keep up with the big Chinese producers.