Shandong Luyitong acquires Chinese first Bitcoin mining ASIC

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 coindesk.com.

Furthermore, Shandong Luyitong paid CNY 3.06bn (roughly USD 466m) in stock purchases and cash to acquire 100% ownership of the firm. 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 CNY 24.57 per share.

Shandong Luyitong is an electronics firm founded in 2003, and that is publicly listed on the Shenzhen Stock Exchange.

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 in 2013.

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.