Hot search keywords

Hot search keywords

Chinese Bitcoin Mining Giant Canaan Officially Files for $400 Million US IPO

Canaan Creative, the Avalon bitcoin miner maker and one of the world’s largest crypto mining equipment manufacturer, has officially filed to be a publicly traded company in the United States.

On October 28, the China-based mining giant filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC), planning to be listed on the Nasdaq under the ticker CAN and set to raise a target of $400 million.

If all goes well, the company’s three-year efforts in seeking public will finally pay off in the U.S. soil, and it will be the first of China’s big three crypto mining companies (Bitmain, Canaan and Ebang) to go public in the capital market.

Final details about the company’s intended raise, valuation and share price have not been decided at this stage. Earlier this month, people close to Canaan told 8btc that its valuation was in the range of $2 billion to $3 billion with 1.26 billion shares to be issued, and he also disclosed the company would be publicly listed in the U.S. on November 8.

$45.8 million loss in H1 2019

According to the SEC filing, Canaan reported a loss of $45.8 million for the first half of 2019, with net revenue of $42.1 million.


Compared to the figures of the previous year, the company netted a profit of $25 million with the net revenue at $275 million in the first half of 2018.

While the net income in the full year of 2018 was only $8.3 million as a result of the worse performance of the crypto market in the second half of the year when bitcoin price plunged from above $6,000 to the $3,000 range.

Financials for H2 2019 would be impressive

Canaan’s U.S. IPO plan comes as it saw soaring demand for crypto mining machines amid bitcoin rally running since this April. Bitcoin’s price jump above $7,500 in the mid-year from the half-year long $3,000-$4,000 range since late 2018 has led to the soaring demand for bitcoin mining equipment. The leading bitcoin manufacturer’s financial figures for the second half of 2019 would thus be pretty impressive.

Chen Feng, sales director of Canaan, said that the company had already received letters of intent demanding 500,000 units of its latest powerful A10 and A11 miners in total, and they expect to sell 1 million bitcoin miners in 2020. If the goal could be achieved, a total of 1 million units would bring more than $1 billion (assuming all are A10 and A11 models) for the company.

Listed companies are buying bitcoin miners

It is worth noting that Canaan has recently received an order of $150 million worth of bitcoin mining equipment from Hong Kong-listed company Grandshores Technology Group amid the country’s blockchain frenzy following president Xi’s endorsement.

Another leading bitcoin mining machine manufacturer Ebang also contracted with Hong Kong-listed company Madison over a $100 million worth blockchain equipment.

Please sign in first