Maker of First Bitcoin Mining ASIC Acquired in What Could Be Industry's Largest Sale

The China-based company behind the first bitcoin mining ASIC has been acquired.

AccessTimeIconJun 8, 2016 at 7:14 p.m. UTC
Updated Sep 11, 2021 at 12:19 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The China-based company behind the first bitcoin mining ASIC has been acquired, though the exact details of the sale vary.

, the company that produces the Avalon chip series, confirmed its acquisition by Shandong Luyitong Intelligent Electric PLC today in an email to CoinDesk. Shandong Luyitong is an electronics firm founded in 2003, and that is publicly listed on the Shenzhen Stock Exchange.

As for the exact amount paid in the acquisition, initial statements from parties involved or close to the deal indicate it could be the largest-ever exit for bitcoin startup.

According to news source Ifeng.com, Shandong Luyitong paid ¥3.06bn (roughly $466m) in stock purchases and cash to acquire 100% ownership of the firm. Further, it said Shandong Luyitong is planning a private share offering in conjunction with the sale, looking to sell as many as 6.79 billion shares at a price of ¥24.57 per share.

In a separate Twitter post, Jihan Wu, CEO of China-based bitcoin mining firm Bitmain, reported that the firm was to be publicly listed through its relationship with Shandong Luyitong, and that it is seeking to raise ¥0.67bn at a valuation of ¥3.1bn.

Representatives of Canaan did not immediately provide more details, stating they were unable to disclose more than what is public at this time.

The Avalon chip was the first application-specific integrated circuit (ASIC) designed for bitcoin mining to hit the market, or the process by which new transaction blocks are created on the bitcoin network. Canaan Creative was founded in 2012, releasing its first Avalon chip the following year.

The company has made no official announcement about the deal through its social media channels. Shandong Luyitong did not immediately respond to requests for comment.

Image Credit: Canaan Creative

Update: This article has been amended to reflect that the Avalon was the first ASIC to hit the market, while several other companies were also developing chips.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.