Canaan, maker of Avalon's mining platforms, is preparing for an initial public offering of $ 400 million on Nasdaq

The Canaan mining platform manufacturer has applied for an IPO from the US Securities and Exchange Commission to raise $ 400 million in the Nasdaq global market. Prior to this filing, the company had also attempted to float in Hong Kong and China. Credit Suisse and Citigroup are among its subscribers.

Read also: 4 new high-power Bitcoin miners have revealed

Canaan Files for US IPO

Canaan Inc., a holding company that owns the Chinese company Canaan Creative, filed a registration statement with the United States Securities and Exchange Commission (SEC) on October 28 in an initial public offering. savings (IPO). "We offer US deposit shares, or ADSs. Each ADS represents Class A common shares with a par value of $ 0.00000005 per share, "states the details of the deposit. The company hopes to raise $ 400 million.

Subscribers named in the IPO filing are: Credit Suisse, Citigroup, China Renaissance, CMBI, Galaxy Digital Advisors, Huatai Securities and Tiger Brokers. The company plans to request the listing of its ads on the Nasdaq Global Market under the symbol CAN. Canaan also told the SEC that on the basis of a report from the independent research firm Frost & Sullivan for which it had paid:

We were the second largest designer and manufacturer of bitcoin extraction machines in the world in terms of computing power sold during the six months ended June 30, 2019.

The company plans to use revenue to research and develop ASICs related to AI and blockchain algorithms and applications, expand its global AI and blockchain business, optimize supply chains, and to repay the debts.

Canaan Corporation Structure: Source: SEC Filing

Canaan attempted an IPO in Hong Kong last year, but let the application expire in November. The South China Morning Post reported that regulators in Hong Kong had described IPOs as "premature" by cryptocurrency companies. fallen through.

Canaan's IPO for the Nasdaq IPO comes just days after Chinese President Xi Jinping commented on the development of China's blockchain technology, which has soared the shares of Chinese companies. the chain of blocks and digital currency. Some have even speculated that Xi's speech provoked the recent rise in prices of bitcoin and other encrypted currencies.

About Canaan and Avalonminers

Founded in 2013, Canaan provides "compute-intensive solutions through our proprietary high-performance computing ASICs" as stated in the registration statement. The company currently sells Bitcoin mining machines under the Avalonminer brand and mining machinery parts. In July, the company began renting its mining machines.

The company's total revenue was $ 394.1 million in 2018, up 106.8% year-on-year, but its net profit dropped 67.4% last year to $ 17.8 million. For the six-month period ending June 30, total revenue decreased 85.2% from the same period last year to $ 42.1 million. The company also recorded a net loss of $ 48.2 million during this period.

According to the filing, since the company had a turnover of less than $ 1.07 million for the last fiscal year, it is considered an "emerging growth enterprise" within the meaning of the 2012 Start-Up Act. our company (Employment Act). "An emerging growth company can take advantage of the reduced disclosure requirement and certain requirements that, in any case, are generally not applicable to public companies," details the filing.

The company recently introduced two new Avalonminer lines: the A1146 and the A1166. The old platform handles bitcoin hashes at a speed of 46-56TH / s, with an estimated energy efficiency of about 57 J / T, and a price of $ 1,978. The latter costs $ 1,204 and runs at 66-68TH / s with an energy efficiency of about 47J / T. Both should be delivered in February, according to the company's website.

What do you think of Canaan's filing of a public offering in the United States? Do you think the company will succeed in raising $ 400 million? Let us know in the comments section below.

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Images courtesy of Shutterstock and Canaan.


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Tags in this story

ASIC, Avalon, Avalon Miner, Bitcoin, Bitcoin Mining, BTC, Canaan Creation, China, Crypto, Cryptographic Assets, Cryptocurrencies, Cryptocurrency, Digital Currency, Archiving, Hong Kong, Ipo, Machinery, Manufacturer, Miners, Nasdaq, Public, public platform, SEC, virtual currency

Kevin Helms

A student in Austrian economics, Kevin discovered Bitcoin in 2011 and has always been an evangelist. His interests include Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.




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