Bitmain rival Canaan raises $90 million in US IPO

Bitcoin mining machines maker Canaan raised $90 million after pricing its US initial public offering at the bottom of its marketed range. The China-based company sold 10 million American depositary shares for $9 piece yesterday.

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.

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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