Canaan Creative, a manufacturer of integrated circuits for bitcoin mining, Avalon, secretly applied to the U.S. Securities and Exchange Commission (SEC) for an IPO (Initial Public Offering). IPO processes to offer the shares of a private business to the public.
The company is among the world’s largest bitcoin miners and is reportedly shooting for $200 million through the IPO. Established in Beijing, China, it comes out to be the first of the three mining corporations to put forward their application to the U.S.
Before Canaan, Bitmain and Ebang, both bitcoin miners were reported to be going public with the shares in the U.S. Bitmain aimed to raise $300 billion and Ebang focused on raising $400 billion. Prior to applying in the U.S., all three companies had faced rejection in the Hong Kong IPO.
As per the monetary values in Hong Kong IPO filing, Canaan made a profit of 13.88 million yuan (approximately $2 million), 132 million yuan ($19 million), and 604 million yuan ($88 million) in the years 2015,2016 and 2017 respectively. Also, it erected several hundred million dollars in its recent funding round. The Hurun Greater China Unicorn Index 2018 declared 15 billion Yuan as the estimated value of Canaan equivalent to $2.2 billion.
The path to an IPO is full of lefts and rights for the China-based company, and it is uncertain whether the U.S. will accept this kind of business or not and moreover, their rejection from Hong Kong can prove to be a negative influence.
