According to the Bloomberg report, the Hangzhou, China-based company raised $90 million in its US IPO. Canaan had initially filed for $400 million IPO, but the company lost its lead underwriter Credit Suisse Group AG before the deal was launched. Later the company updated its IPO filing and set the target of $100 million.
Canaan: Second largest bitcoin miner maker
Canaan is the biggest rival to the bitcoin mining machine manufacturer giant Bitmain. With its US IPO, Canaan has the potential to surpass Bitmain. However, it was reported that Bitmain also filed for a US IPO confidentially last month. Bitmain is also in turmoil as it is facing a civil war, as co-founder Micree Zhan was abruptly removed from the company. Zhan in an open letter to Bitmain claimed to use legal help to get back into the company.
A few failed attempts
Canaan had filed for an IPO in Hong Kong, but the city’s exchange said that it was “premature” for cryptocurrency-related businesses to go public in the Asian market. According to Bloomberg, 28 companies based in China or Hong Kong raised $3.25 billion in US IPOs in 2019.
Canaan generated $95 million in revenues in 2019 and reported a profit of $13 million in the Q3 of this year.