World-renowned Bitcoin miner firm, Cannan Creative has raised $90 million in its Initial Public Offering (IPO).
According to a Bloomberg report, the Hangzhou China company first filed for a $400 million IPO but had to update its IPO filing to $100 million. This was due to the fact that the firm lost Credit Suisse Group AG, one of its main underwriters shortly before the commencement of the IPO. Canaan is also one of the largest bitcoin miners in the crypto space. Second only to bitcoin mining machine creator Bitmain.
According to reports, cited filings from US regulator and the SEC, Canaan sold 10,000,000 shares at $9 each on November 20, 2019.
Canaan Creative leading the Bitcoin mining space
Prior to this time, Canaan Creative also tried unsuccessfully to carry out an IPO in Hong Kong. Deciding, later on, to do it in the US. The company faced significant setbacks with the pulling out of Credit Suisse but carried out the IPO all the same. Sources familiar with the issue disclosed that Credit Suisse “was concerned whether the offering could secure sufficient orders.”
With this IPO, Canaan is a step ahead of Bitmain that also recently filed for an IPO in the US. The firm is currently experiencing a lot of internal unrest. This is due to the sack of co-founder Micree Zhan from the company via an internal email. Zhan wrote an open letter to the company, threatening to fight their decision legally. Bitmain miner importer DTPK was arrested by the Russian Federal Customs Service in August. They were accused of discrepancies in their records and for underpaying Russian customs fees.
In 2019, Canaan allegedly generated $95 million in revenues, also claiming to have made revenue of $13 million in Q3 of this year.