Canaan Creative to Rake $100M in US IPO

Cryptocurrency mining giant in China, Canaan Creative has recently announced terms for its United States IPO (Initial public offering) intended for this month.

In addition to that, Renaissance Capital reported on November 13 that Bitcoin (BTC) mining giant Canaan Creative declared its plans to raise to $100 million. And they will achieve this by offering 10 million American depositary shares (ADS) at a price range of $9 to $11. Possibly, this would put the firm’s overall market value at around $1.6 billion, with an enterprise value of $1.4 billion.

Moreover, last October, Canaan filed with the U.S. Securities and Exchange Commission (SEC) for an IPO meant to raise $400 million. Also, being in the Nasdaq listing under the ticker CAN is part of the plan. If Canaan succeeds, the mining firm will become the first-ever China-based mining company to see public trading in the U.S.

Then, as part of the registration to conduct an IPO in the U.S., Canaan showed its Q3 net profit. It is 94 million yuan or $13 million. The firm made revenue of just over $134 million in the first nine months of 2019. The earlier weaker performance has still resulted in a total comprehensive income loss of about $31 million.

Chinese Mining Giant

Furthermore, Canaan is one of the three major Chinese crypto mining firms beside Bitmain and Yibang International. And previously, it tried to launch an IPO in Hong Kong and China. However, the two attempts failed after regulators pored over their business model and financial outlook.

Meanwhile, Bitmain enjoys a 75% market share of the crypto hardware market around the world. Moreover, it has, similarly, attempted to complete an IPO, thus far meeting with failure.

Last month, Bitmain opened what is believed to be the largest facility globally for Bitcoin mining in Rockdale, Texas. Additionally, it completed it due to a partnership with the Rockdale Municipal Development District and Canadian tech firm DMG Blockchain Solutions.