By
Temitope Olatunji
April 18th, 2024
Through this Bitcoin mining IPO, Canaan plans to raise $200 million from the public. This is the company’s second attempt for public filing.
With the revival in the Bitcoin prices over the last few months, manufacturers of the Bitcoin mining equipment seem to be having a great time. One of the major Bitcoin manufacturers Canaan Creative has recently filed for an Initial Public Offering (IPO) in the United States.
According to the report from IRFAsia on Wednesday, July 31, this China-based crypto mining company is looking to raise $200 million through its IPO. The report of Canaan filing for an IPO first emerged earlier this year in January 2019. It was the time when the crypto market was going through its worst phase and Bitcoin was trading close to $3500 levels.
During that time, a source close to the exchange operator said:
“The exchange is very hesitant to actually approve these bitcoin mining companies because the industry is so volatile. There’s a real risk that they could just not exist anymore in a year or two. The HKEX doesn’t want to be the first exchange in the world to approve this and have one die on them.”
Canaan’s Shift in IPO Plans
Canaan’s first attempt to go public was during March 2018 when the crypto market had just started its downturn. Canaan was looking to file for a $1 billion IPO on the Hong Stock Stock Exchange. However, the plan was later abandoned by the company and the company’s IPO application lapsed in November 2018.
In March this year, the company was supposedly in talks with NASDAQ and the New York Stock Exchange (NYSE). As per the SEC’s new rules implemented in July 2017, companies in the US can make confidential filings of any size. The firm then submits its IPO application to the SEC for review.
Canaan is not the first Bitcoin manufacturer to consider filing an IPO. Crypto mining giant Bitmain had earlier filed for an IPO but failed to make a bid with the Hong Kong Stock Exchange. Back in June, Bitmain also considered filing an application with the US.
Bitmain’s Bitcoin Miner Importer in Russia Lands in Problem
In other news, the Russian Federal Customs Service has initiated a criminal investigation on an importer of Bitmain’s Bitcoin miner for the underpayment of the customs fees.
The CoinDesk publication got its hand on the search warrant, which reads:
“In an undefined time, but no later than August 8, 2017, [DTPK CEO] Artem Aleksandrovich Bublik … got involved in a criminal conspiracy with undefined individuals, the goal of the conspiracy being avoiding due customs fees in especially large amounts while importing into the Eurasian Economic Union of ASIC miners and power elements for ASIC miners.”