Yahoo Finance Cryptos Lower; Mining Company Launches $2 Billion IPO
Investing.com - Cryptocurrencies were lower on Tuesday, with Bitcoin nearing the $8,000 mark, not far from last week’s low of $7,972.40.
Bitcoin was trading at $8,201.10, falling 3.45% as of 8:20 AM ET (12:20 GMT) on the Bitfinex exchange.
Despite the decrease in digital asset values, the second largest Bitcoin mining firm has announced plans to raise $2 billion in an initial public offering in July. It would be the biggest bitcoin focused IPO so far.
Canaan Inc, a cryptocurrency mining rig firm, is planning to raise the money not as a bitcoin firm, but as a chip designer with focus on blockchain and artificial intelligence, Reuters reported on Tuesday. The Beijing-based company was given regulator approval last month, despite a cryptocurrency mining crackdown in China.
As the price and interest in virtual currencies grew, demand for digital token mining gear rose but with Bitcoin prices down 40% this year, interest in mining has fallen.
Still, Canaan’s revenue grew by 3% year-on-year, with 1.3 billion yuan (around $204 million) in revenue in 2017.
The price of other digital coins fell on Tuesday, with Ethereum, the world’s second largest cryptocurrency by market cap, down 3.98% to $682.90 on the Bitfinex exchange. Ripple, the third largest virtual currency, decreased 3.98% to $0.66055 while Litecoin was at $132.21, a slump of 2.98%.
In other news, global investment firm eToro is expanding its cryptocurrency offerings and is planning to launch an exchange and digital wallet, including into the U.S. The social investing site already offers 10 virtual currencies and is planning to add more.
Meanwhile, cryptocurrencies are becoming political in the U.S., which could impact the future of digital currencies. In California, Republican Congressional candiate Brian Forde has raised nearly $100,000 in virtual currency donations. As the former head of MIT's Digitual Currency Initiative, he is thought to be a supporter of digital currencies and plans to use blockchain technology to record constituents policy preferences. Across the country, bitcoin supporter Manny Alicandro announced in early May that he is running on the GOP ticket for New York Attorney General.
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