The recent Bitcoin price increase prompted a surge in financing for Chinese companies seeking to expand their cryptocurrency business
The soaring price of cryptocurrency and signs that mainstream institutions are increasingly inclined to accept it have promoted the prosperity of the cryptocurrency market.

The Chinese Bitcoin mining machine manufacturer Yibang International, which was listed on the Nasdaq in June this year, conducted two rounds of financing in February alone, raising a total of US$170 million. Also last month, the solid waste recycling company Code Chain Newland raised US$25 million through allotment to provide funds for entering the field of Bitcoin mining.

Zhu Jiehan, managing partner of Kenetic Capital, a Hong Kong-based blockchain venture capital firm, said that in the private equity market, “competition is becoming increasingly fierce, and each round of high-quality financing will be oversubscribed within a week after the announcement”.

Although the government's attitude towards cryptocurrency is complicated, the market is still quite prosperous. Blockchain technology has received official support from China. It is the foundation of cryptocurrencies such as Bitcoin and the key to innovation in areas such as trade finance, supply chain management, and anti-counterfeiting. Investors said that this has promoted the emergence of more attractive cryptocurrency projects in China, although many companies still choose to list and raise funds overseas.

Ebon International plans to use its newly raised capital to expand into the field of cryptocurrency mining, open cryptocurrency exchanges in Singapore and Canada, and launch a bitcoin trading platform similar to brokerage Robinhood.

Guo Yi, the chief operating officer of Univest Securities, who underwritten these transactions, said: “The growth story of Ebon International is very attractive to institutional investors. Thanks to the soaring bitcoin price, all industry participants’ financing It's getting busier." Vantone Securities also helped several other Chinese cryptocurrency companies raise funds.

Canaan, another Chinese manufacturer of bitcoin mining machines listed on NASDAQ, is also entering the "mining" field. In this field, powerful computers are used to verify Bitcoin transactions and obtain related benefits.

Bitcoin is now the world's most valuable cryptocurrency, and its price has soared by more than 300% since the fourth quarter of last year. Feng Weidong, co-CEO of CodeChain Newland, said: "The soaring price of Bitcoin provides us with a unique opportunity to establish a mining business." The company has ordered 10,000 Bitcoin mining machines.

As Chinese companies scramble to enter the cryptocurrency field, Coinbase, the largest cryptocurrency exchange in the United States, applied for a NASDAQ listing last month. For cryptocurrency advocates seeking mainstream recognition, obtaining regulatory approval will be a milestone victory.

Jiang Changhao, co-founder and chief technology officer of Cobo, a Beijing-based cryptocurrency custody and wallet service provider, said: “Everyone can feel this exciting atmosphere in the market, and the listing of Coinbase will further boost market sentiment. ."

Cobo plans to launch a new round of venture financing this month, with the goal of raising tens of millions of dollars to fund international expansion. Jiang Changhao said: "Due to the bullish market, our business has grown very, very fast."

Zhu Jiehan of Kenetic Capital believes that China's official support for blockchain technology and the use of blockchain technology in major initiatives by giants such as Ping An and Ant Group are a factor in the increase in the number of high-quality blockchain and cryptocurrency projects in China. But he said that the recent surge in cryptocurrency prices has made the industry’s competition “add fuel to the fire”.

Nevertheless, some Chinese companies' entry into the cryptocurrency space still surprised investors. Last month, short sellers Hindenburg Research and Culper Research accused Chinese blockchain company SOS of fictitious cryptocurrency business. The latter refuted these allegations as “distorting facts, misleading, There is no factual basis."

Guo Yi, chief operating officer of Wantong Securities, said that the market has zero tolerance for fraud, but there is nothing wrong with Chinese companies joining the Bitcoin boom. He said: "If people don't point the finger at Tesla CEO Elon Musk for supporting Bitcoin, what is wrong with Chinese companies accepting Bitcoin?"

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