China’s Bitcoin Mining Firm Canaan Creative to Launch Its IPO Next Week on Nasdaq

| Updated
by Bhushan Akolkar · 2 min read
China’s Bitcoin Mining Firm Canaan Creative to Launch Its IPO Next Week on Nasdaq
Photo: Canaan / Twitter

Failing to go public on the China and Hong Kong exchanges, Canaan now will make its public listing through the Nasdaq platform.

Canaan Creative, the Chinese Bitcoin mining company is all set to go public by listing its shares on the Nasdaq trading platform next week on November 20. As we have already reported, Canaan filed for its U.S. IPO on October 28, with Galaxy Digital, Credit Suisse, Citigroup and four other underwriters.

Canaan is one of the biggest rivals of Bitmain in the crypto mining space. As per the report, Canaan is planning to raise around $400 million from its IPO. However, it is unclear at this stage that at what price the shares of Canaan will be listed on the Nasdaq platform.

This is not for the first time that Canaan is looking to launch its IPO. Previously, Canaan planned to launch the IPO in homeland China’s as well as Hong Kong exchanges. However, Canaan failed in its attempts previously but remains confident for its Nasdaq listing. According to Reuters, Canaan’s push with its IPO comes amidst its efforts to pay down its debts. The publication reported:

“In an effort to pay down debt and fund research, Canaan is now trying its luck stateside with Nasdaq even as the bourse tightens restrictions on the IPOs of small Chinese companies”.

Reuters further added that Canaan has seen a major drop in its revenue during the first three quarters of 2019 up to September. As per the publication, Canaan’s net revenue stood at 959 million yuan ($137 million) during the first nine months which was less than half during the same period of 2018.

At the same time, the company’s bottom line has been hit hard. The bottom line showed a loss of massive 229 million against the profit reported in the previous year. This is because of the extreme volatility in the Bitcoin price and the shrinking industry demand for mining equipment.

Some of the industry experts state that the Bitcoin price recovery might lift the demand back improving the company’s performance. However, it remains to be seen whether or not Canaan’s move of quick fundraising to pay off its debts proves successful.

“A price rebound would lift demand. A jump in prepayments to Taiwan’s TSMC, which makes chips for Canaan, also suggests the company is predicting a strong recovery in the second half,” commented Arun George of Global Equity Research.

Altcoin News, Bitcoin News, Blockchain News, Business News, Cryptocurrency News
Related Articles