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Canaan Creative On Its Terms For US IPO

Canaan Creative, a Chinese cryptocurrency mining giant, has reported its terms for United States initial public offering (IPO) planned later this month. In a report on November 13, Renaissance Capital revealed that Bitcoin (BTC) mining giant Canaan Creative aims to raise as much as $100 million. And they will do this by offering 10 million American depositary shares (ADS) at a price range from $9 to $11. As a result, this could put the firm’s overall market value at some $1.6 billion, with $1.4 billion enterprise value.

An ADS is a U.S. dollar-denominated equity share of a foreign-based firm ready to purchase on American stock exchange.

Back in October, Canaan Creative filed with the U.S. Securities and Exchange Commission (SEC) for an IPO. And this has the goal to raise $400 million, with plans to part of Nasdaq listing under the ticket CAN. If Canaan is lucky, the company might become the first China-based mining firm to see public trading in the U.S.

Moreover, Canaan announced its Q3 net profit to be 94 million yuan or $13 million. This is also a part of its registration to conduct an IPO in the United States. But the company generated revenue of just more than $134 million in the first nine months of 2019. The weak performance early on has still resulted in a total comprehensive income loss of about $31 million.

 

The Unpredictable Bitcoin

Meanwhile, Bitcoin’s price has been unstable since its October spike to $10,350. And as of now, it is not giving any apparent indications of where its trend will head next. Above all, crypto’s pioneer asset has been relatively uneventful, with a lot of price fakeouts.

In addition to that, the daily candle of Bitcoin bounced off its 50-day moving average (MA) as support on November 12. But the industry’s flagship asset repeatedly faced resistance at its 0.5 Fibonacci retracement level. Also, this could be its range equilibrium.

 



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