By Staff Writer
As the market conditions for Bitcoin and cryptocurrency improve, so are the temptations amongst Bitcoin mining players to further their long-suffering ambitions to go public.
Now the reports emerge that Canaan Creative, one of the world’s largest mining equipment manufacturers, has formally filed an application to go public in the US, according to reports (see here).
The Hangzhou, China-based Canaan’s initial public offering prospectus filed with the U.S. Securities and Exchange Commission (SEC) on Oct. 28 indicates it intends to list on NASDAQ under the ticker name CAN. According to the filing, it has set a placeholder amount of $400m for the raise.
This is the third time Canaan has applied for an IPO with two previous attempts to go public (in China and Hong Kong) did not materialize due to volatility in the crypto markets.
China-based bitcoin miner maker lost $45.8m for the six months ending June 30, 2019, on net revenue of $42.1m, compared to $25m profit on net revenue of $275m for the first half of 2018.
Canaan said net income in full-year 2018 was $8.3m on net revenue of $394m, as the bitcoin price plunged in the second half of 2018 from above $6,000 to around $3,000, causing many bitcoin miners to be unprofitable to operate. Notably, it had a net loss of $16.7 million in the second half of last year.
The rising price of Bitcoin this year has been kind to the Bitcoin mining equipment makers, many of whom now want to cash it on the bull cycle by going public. Another Bitcoin mining equipment maker is reportedly looking to go public in the US after its application to get listed on the Hong Kong stock exchange has reportedly failed to get the necessary approval.