Mining Giant Canaan Creative Files to Go Public in the US Markets



Beijing-based Canaan Creative, a leading manufacturer of blockchain servers and solutions for repetition ASIC chips, has again filed to go public (this time in the US markets).

The company, which is one of the world’s largest crypto mining equipment producers, filed its initial public offering (IPO) prospectus with the US Securities and Exchange Commission (SEC) on October 28. 

The firm noted that it’s planning to list on Nasdaq, the world’s second-largest stock exchange, under the ticker CAN. Canaan is reportedly targeting a placeholder amount of $400 million for the raise. 

The firm’s final amount of the planned raise, valuation and share prices have not been disclosed.

Canaan’s filing revealed that the Hangzhou, China-headquartered Bitcoin mining hardware maker lost $45.8 million during the six months ending June 30, 2019. During this time period, the company’s revenue totaled $42.1 million. 

During the first half of last year, Canaan generated $25 million in profit while earning a revenue of $275 million.

Canaan’s management noted that its total income during 2018 was $8.3 million and its revenue totaled $394 million. This, as the Bitcoin price dropped significantly during the second half of last year from over $6,000 to around $3,150. The dramatic price decline led to many Bitcoin miners halting their operations as mining was not generating profits. Canaan reported a loss of $16.7 million during the second half of 2018.

Canaan’s recent filing marks the firm’s third attempt to go public. Its first and second attempts to conduct an IPO were in China and Hong Kong. However, both times, the company failed due to uncertainties and instability in the markets.

Chinese media outlets have estimated Canaan Creative’s valuation at somewhere around $2 billion to $3 billion, with 126 million shares that may be issued.

Earlier this year, the firm decided to make another attempt at going public in either mainland China or the US. In July 2019, Canaan submitted a confidential draft prospectus with the SEC, however, a formal F-1 form was not publicly disclosed until Monday’s announcement..

Bitcoin’s price has surged this year, resulting in greater demand for BTC mining hardware, which has led to increased sales for major manufacturers including Bitmain Technologies, Canaan, and MicroBT. 

MicroBT, the manufacturer of WhatsMiner, is reportedly expecting $400 million in revenue for Q3 2019.

Bitmain is also planning to go public in the US market, after the company’s highly anticipated  IPO failed in Hong Kong due to uncertainty regarding the firm’s sustainability.

Source
Ethereum World News

The post Mining Giant Canaan Creative Files to Go Public in the US Markets appeared first on Bit News Live.

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