Canaan Officially Files for $400 Million IPO on Nasdaq

| Updated
by Teuta Franjkovic · 3 min read
Canaan Officially Files for $400 Million IPO on Nasdaq
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Canaan, which is a competitor to Bitmain, is reportedly seeking to list in the U.S. after its Hong Kong plans fell through.

One of the biggest bitcoin miner manufacturers, the Avalon Bitcoin miner Canaan Creative, publicly filed for a U.S. Initial Public Offering (IPO) on Monday, with big names as underwriters. Credit Suisse, Galaxy Digital, Citigroup, China Renaissance, CMBI, Huatai Securities and Tiger brokers are obliged to pay for and accept delivery of the ADSs offered by this prospectus.

The second-largest manufacturer of ASIC mining hardware after Bitmain, Canaan plans to list its shares on Nasdaq under the symbol “CAN.” The company intends to raise $400 million, per the filing. As per the company’s SEC filing, the company made $394 million in revenue in the fiscal year of 2018, with a net income of $8.3 million. Still, the company managed to lose $45.8 million during this year and its year to year revenue has also declined by 85% from the first half of 2018 to this year’s first half.

According to the report, during the first half of this year, the company’s global share for Bitcoin mining machines is 21.9%. Since it’s launched, Canaan delivered 26,000 AI chips and modules.

In July it was revealed that Canaan had secretly filed an IPO in the U.S. after it didn’t succeed in its plans to go public on Hong Kong and mainland China markets due to market uncertainties. The same thing was sought by its competitor  Ebang but also, without any success. The truth is, hardware suppliers were hit pretty badly when Bitcoin prices took a plunge last year, making impossible for mining farms to make some profit.

However, this June, the market began its revival showing signs of getting better with Bitcoin prices excelling $13,000. This weekend, Bitcoin prices went wild surpassing the $10,000 psychological limit after Chinese President Xi Jinping endorsed blockchain technology last week.

Last week, Bitmain opened “the world’s largest” Bitcoin mining farm in Texas’ Rockdale city, following the news that Digital Currency Group-backed Layer1 raised $50 million to run its own mining business in the same state. Construction of this facility began already last year after the company announced that it would build the biggest cryptocurrency mining farm in the world. According to Rockdale Lead Project Manager for Bitmain Clinton Brown, the facility is in line with Bitmain’s continuous plans to spread its reach. Furthermore, Brown mentioned that the choice of Texas is because the state’s resources aren’t only relevant to Bitmain, but also to the entire crypto industry.

In other news, crypto billionaire and Bitmain’s founder Micree Ketuan Zhan has been banished out of his own company where he holds around 60% control. CEO and fellow co-founder Jihan Wu terminated all the day-to-day working positions and responsibilities that Micree Zhan had and held within the organization down to the deletion of his e-mail and denial of access to Bitmain’s premises. The thing is, Zhan holds huge amount of tokens in his portfolio and if he decides to dump, it could affect crypto markets a lot.

Wu is known for being quite passionate of Bitcoin Cash that jumped more than 10% in the last 24 hours and at the time of writing it was up 7.14%. If Zhan decides to dump his 1.6 million tokens to strategically ruin the Bitcoin Cash project it will ruin several things for Wu too.

Altcoin News, Bitcoin News, Business News, Cryptocurrency news, IPO News
Teuta Franjkovic

Experienced creative professional focusing on financial and political analysis, editing daily newspapers and news sites, economical and political journalism, consulting, PR and Marketing. Teuta’s passion is to create new opportunities and bring people together.

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