One of the three co-founders of Canaan Creative, has stepped down from the Chinese company’s leadership. Canaan are makers of the Avalon cryptocurrency mining equipment.
Xiangfu Liu will no longer serve as a board member at the Hangzhou-based Canaan Creative according to government business registration data updated on Jan. 30.
Canaan Inc., unsuccessfully sought an initial public offering (IPO) in Hong Kong last year. Sometime since then Liu has left his day-to-day management role at the manufacturer and his executive board member position at its holding company.
Unlike rival manufacturer Bitmain, Canaan does not mine crypto itself or run mining pools, and the leadership wanted to keep it that way, in order to justify the company’s sustainability for an IPO, the source said.
However, Liu, who has a background in computer science, believes hardware and software should not cut themselves off from mining farms and pool businesses in the blockchain industry.
Liu remains a substantial shareholder
Nevertheless, Liu, 35, remains a major shareholder of Canaan Creative. While Zhang serves as Canaan’s chief executive officer, Liu still owns about 17.6 percent of Canaan’s total shares. In total, the three co-founders control over 50 percent of the firm.
Canaan is not the only mining company reducing staff numbers, as other mining giants like Bitmain have also had to fire staff and cut costs to cope with reduced demand in the crypto bear market.
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