Cryptocurrency

Mining Bitcoin: Canaan Creatives have problems

One of the major manufacturers of mining equipment Bitcoin might be going through turmoil internally. This is Canaan Creatives, which would have displaced four of its directors.

To be certain this situation, it might add more problems to the signature of chinese origin. The four senior managers were removed from the company registration of the company in an unexpected way. This has led to speculations about possible internal problems.

Canaan Creatives and Ebang, are currently the only two manufacturers of equipment for the mining Bitcoin trading on the New York stock exchange. It should be noted that both of these have presented problems to raise their prices on the Nasdaq.

How did it come to this point in Canaan Creatives?

The company, in previous updates of their registration, had with high-ranking officials who now are not. In this case, it is the co-chair, Jianping Kong, the founder and chief financial officer Jiaxuan Li, non-executive director, Qifeng Sun, and the director of public affairs Songhua Your.

These four officials of a high-level, have all been removed from the most recent update of the registration of the company. Now, the manufacturer of equipment for mining of Bitcoin, Canaan Creatives, account with a single director, it is Nangeng Zhang.

The title of this last officer has changed in the grill of the staff of the manufacturer of the ASIC. Now Zhang is generante general and executive director. Previously held the positions of president and general manager.

The problems of Bitmain are contagious

You must take into account that, according to reports, the company is going through “a devastating time”. The internal disputes between Zhang, who owns the epicenter of power in Beijing, on the one hand, and the directors of the company headquarters in the city of Hangzhou, on the other, are coming to a peak moment.

According to the portal CoinDesk, there is no clarity about the reasons for the dispute, but it is believed that the strategy long-term manufacturer of equipment for mining Bitcoin, it could be the reason. This fact, it could become a catastrophe for Canaan Creatives.

The other case that can be used as a reference, is the company Bitmain. In the same, similar problems has caused a sudden fall of the company, which has made losing weight in the market against the strong threat of competition from the powerful MicroBT.

The contributions of the creator of machines of mining Bitcoin Canaan Creatives, they have been kept in less than $2 from several weeks ago. Source: Investing.com

Problems compounded by more problems

The problems that has passed through Canaan Creatives with the sales of their machines to mining Bitcoin have been remarkable. According to their own reports, the losses in 2019, were of almost $150 million dollars. While, in the first quarter of 2020, the same were $5.6 million.

Similarly, another of the problems of the company, it is the wrong time to go through their quotes in Nasdaq. From the 14th of may, immediately after the Halving, the same began to fall so loud. In the weeks since, the value of these contributions has remained below $2.

Canaan Creatives, is located in the select group of the top five companies in the market of equipment ASIC. Currently, almost all of these firms are experiencing problems, both in sales, Bitmain and Innosilicon, as in both sales and brokerage, Canaan Creatives and Ebang.

The only one of these giant companies seem to go through a good streak, is the above mentioned MicroBT. This firm has a good position in the market and their teams of mining Bitcoin, they have been highly competitive and with an efficiency only matched by that of Bitmain.

Data to be taken into consideration

Nangeng Zhang, who is currently the only head visible in the policy of the manufacturer of devices of mining Bitcoin, Canaan Creatives, joined to the same in 2015 as CEO.De according to the records of the company, all of these changes were made last July 6.Like Canaan Creatives, the other company manufacturer of ASIC, Bitmain, is going through turbulent internal disputes between Micree Zhan and Jihan Wu.The contributions of Canaan Creatives on Nasdaq, not have to lift her head from the Halving of may. The same, at the time of writing they are located at $1.86.

Reliable sources

The information of this content has been taken from reliable sources which are detailed below:

1 – professional Management of content by the authors of CriptoTendencia.
2 – external Sources: CoinDesk.com, qixin.com, api3.cls.cn, investing.com and Canaan-creative.com.

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About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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