Bitcoin miner Canaan wants to raise $ 400 million with an IPO

Bitcoin miner Canaan wants to raise $ 400 million with an IPO

bitcoin mining

Bitcoin mining producer Canaan Creative has filed an application with the Securities and Exchange Commission (SEC) for an IPO. The listing of its shares must take place on the American tech exchange Nasdaq.

The bitcoin mining company wants to follow competitor Bitmain. A few months ago it started the procedure with a confidential request to the SEC.

Bitcoin miner Canaan

After Bitmain, Canaan is the second-largest ASIC manufacturer in the world. They are best known for their Avalon series. The shares will be for sale on the Nasdaq under the symbol “CAN”.

The aim is to raise $ 400 million with the IPO. According to the SEC, the company generated revenue of $ 394 million in the fiscal year 2018, resulting in a net profit of $ 8.3 million.

In this calendar year, the company already made nearly $ 46 million in losses. Turnover in the first half of 2019 is 85% lower compared to the same period last year.

In the first half of this year, the global share of the company’s bitcoin machines was 21.9%. Since the company was founded in 2012, it has sold 26,000 products.

IPO on Nasdaq

In July Canaan already announced that it had submitted a confidential request. Initially, the plan was to do the IPO in Hong Kong, but that request did not come through.

Competitors Bitmain and Ebang have also tried to get approval in, but this went as well without success.

It is now the third time that Canaan has attempted an IPO. Because after Hong Kong, the same request at the Shanghai Stock Exchange also failed because there were too many uncertainties in the market.

It is not news that Canaan is looking for its calamity in America. A few months ago the company entered the first phase. The SEC started an investigation at the time.

Then it was a proposal submitted in confidence. This has been possible since a change to the rules of the SEC in 2017.

Before this adjustment, only the smaller companies had the opportunity to submit these applications in a confidential and private manner.

Canaan’s request can now also be viewed in public. That was not possible a few months ago.

Source: https://www.theblockcrypto.com

About Shawn Morrison 266 Articles
One of the founders of BitzArena. Active with crypto currency since the rise of the bitcoin. Loves the innovative character of crypto and blockchain technology, and follows developments in the market closely. Likes to connect technology with business, and likes to make difficult concepts accessible to a wide audience.

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