Shandong Luyitong Intelligent Electric PLC which manufactures electric apparatus and equipments has acquired Canaan Creative, the company that produces the Avalon chip series, the first application-specific integrated circuit (ASIC) for bitcoin mining.

According to Ifeng.com, Shandong Luyitong paid 3.06bn yuan (roughly $466m) in stock purchases and cash to acquire 100% ownership of the firm, as reported by coindesk.com. Also, the company is looking for a private share offering and plans to sell 6.79 billion shares at a price of 24.57 yuan per share.

A news report stated that, in order to acquire 100% stake, Shandong Luyitong paid 1.06 billion yuan in cash, for a total price of 3.06 billion yuan (roughly $466m). In a twitter post posted on 8th June, Jihan Wu, co-founder of Bitmain, a Chinese bitcoin mining firm, said

The company nor the officials of Canaan have officially announced the information about the deal on social media. The company stated that they were unable to disclose any further information.

Founded in 2003, Shandong Luyitong is an electronics firm that is publicly listed on the Shenzhen Stock Exchange. Canaan Creative was founded in 2012 and is the worldwide leader in producing Blockchain servers and solutions for repetition ASIC.