Bitcoin mining hardware manufacturer, Cannan Creative has formally filed to be publicly listed on the NASDAQ exchange (for the third time) to raise $400 million.
Canaan Creative, one of the biggest Bitcoin miner manufacturers reportedly filed for a U.S. Initial Public Offering (IPO). The company also listed Credit Suisse, Citi Group, Galaxy Digital, and four others as its underwriters.
Canaan’s prospectus with the U.S. Securities and Exchange Commission (SEC) revealed it intends to list on NASDAQ. Accordingly, it’ll make use of the ticker name CAN and aims at raising $400 million. However, the final amount of the IPO, valuation, and price per share offering hasn’t been decided yet.
More insight into Cannan’s plans
Canaan Creative, the Hangzhou-based company explained its plans for the amount raised. Particularly, it plans to fund research into artificial intelligence, blockchain research, and pay off debts.
However, the company didn’t mention the reason behind its third attempt at an IPO at this time. Before now, Canaan Creative experienced three failed attempts to go public, after its first and second trial in mainland China and Hong Kong, respectively. They both fell through as regulators doubted its business model and prospects.
Interestingly, the filings revealed the Bitcoin miner maker lost $45.8 million for the six months ending June 2019. Although, the company made $25 million profit on net revenue of $275 million as of Q1 of 2018.
Canaan recorded a net income of $8.3 million in 2018, from net revenue of $394 million. Majorly resulting from Bitcoin’s price plunged in Q2 of 2018 from about $6,000 to about $3,000. Thus, meaning many bitcoin miners ran into losses.
What does the future hold for Bitcoin mining?
Canaan Creative still holds a reputation for designing and selling high-performance integrated circuits. It’s also behind the Avalon series of bitcoin mining machines. The company started in 2013.
Despite President Xi Jinping’s and Huang Quifan’s comments concerning the development of blockchain technology in China. The fate of bitcoin and bitcoin mining in China remains a blur. Since Beijing already closed down local cryptocurrency exchanges in 2017. Also, in April it indicated to eliminate bitcoin mining in the country. However, Chinese media believe that blockchain innovation shouldn’t be taken as a boost for virtual currency speculation.