The Bitcoin mining industry is currently undergoing a lot of changes. According to recent reports, the world’s first bitcoin ASIC company has been acquired! Canaan Creative has been acquired by Shandong Luyitong Intelligent Electric PLC (SHE:300423), a Chinese electronics company. Canaan Creative has been known among the bitcoin mining community for its Avalon range of ASICs and this acquisition is supposed to be one of the biggest in the sector.
Canaan Creative has been acquired by Shandong Luyitong by investing a bit over $450 million in share purchase and cash deposits. The reports of the acquisition first appeared in some of the leading regional publications, which was later picked up by other international websites.
The upcoming halving of Bitcoin network and the surge in bitcoin price has made mining an attractive affair. The increased interest in digital currency may have been behind the latest acquisition of Canaan Creative by Shandong Luyitong.
In other news, another Swedish bitcoin company KnCMiner has recently declared bankruptcy following increased cost of operations, mainly due to the rising energy costs in the country, However, compared to Sweden, the Chinese bitcoin sector enjoys much cheaper energy prices, making the operations much more economical.
Whether Canaan Creative will continue to make Avalon Bitcoin ASICs post acquisition is not yet known. But going by Shandong Luyitong’s intentions of buying out Avalon, we can expect the company to make use of the intellectual properties and other high-tech integrated circuit fabrication and manufacturing techniques from the company. After all, ASICs are specialized hardware designed for very high performance with reduced energy requirements.
The advanced technology can come in handy for the development of regular semiconductor chips. Also, the acquiring company will have an advantage in terms of required capital as compared to the previous owners of the brand Avalon.