Mining rig producer Canaan has filed for an IPO with the U.S. Securities and Exchange Commission to boost $400 million on the Nasdaq Global Market. Prior to this submitting, the corporate had additionally tried to go public in Hong Kong and China. Credit Suisse and Citigroup are amongst its underwriters.
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Canaan Files for US IPO
Canaan Inc., a holding firm that owns China-based Canaan Creative, filed a registration assertion with the U.S. Securities and Exchange Commission (SEC) on Oct. 28 for an preliminary public providing (IPO). “We are offering American depositary shares, or ADSs. Each ADS represents Class A ordinary shares, par value US$0.00000005 per share,” the submitting particulars. The firm hopes to boost $400 million.
The underwriters named within the submitting for the IPO are Credit Suisse, Citigroup, China Renaissance, CMBI, Galaxy Digital Advisors, Huatai Securities, and Tiger Brokers. The firm plans to use to listing its ADSs on the Nasdaq Global Market underneath the image CAN. Canaan additionally advised the SEC that, based mostly on a report by unbiased analysis agency Frost & Sullivan which it paid for:
We have been the second largest designer and producer of bitcoin mining machines globally when it comes to computing energy bought within the six months ended June 30, 2019.
The firm plans to make use of the proceeds to analysis and develop ASICs associated to AI and blockchain algorithms and purposes, increase its AI and blockchain enterprise globally, optimize provide chains, and repay money owed.
Canaan tried an IPO in Hong Kong final yr however let the appliance lapse in November. The South China Morning Post reported that Hong Kong regulators stated IPOs by cryptocurrency companies are “premature.” The firm additionally tried to go public in China three years in the past via a reverse merger by shopping for a Shandong-based electrical gear maker, however that plan additionally fell by means of.
Canaan’s Nasdaq IPO submitting comes solely days after Chinese President Xi Jinping commented on the event of blockchain know-how in China which despatched shares of blockchain and digital currency-related companies hovering. Some even speculated that Xi’s speech caused the current hike in costs of bitcoin and different cryptocurrencies.
About Canaan and Avalonminers
Founded in 2013, Canaan offers “supercomputing solutions through our proprietary high-performance computing ASICs,” its registration assertion reads. The firm presently sells bitcoin mining machines underneath the Avalonminer model and mining machine elements. In July, the corporate began leasing its mining machines.
The firm’s complete income was $394.1 million in 2018, a 106.eight% improve year-on-year, however its internet revenue fell 67.four% final yr to $17.eight million. For the six months interval ending June 30, the entire income fell 85.2% in comparison with the identical interval final yr to $42.1 million. The firm additionally recorded a internet lack of $48.2 million throughout that point interval.
According to the submitting, because the firm has lower than $1.07 million in income for the final fiscal yr, it qualifies as an “emerging growth company” pursuant to the Jumpstart Our Business Startups Act of 2012 (the JOBS Act). “An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise not applicable generally to public companies,” the submitting particulars.
The firm just lately introduced two new strains of Avalonminers: the A1146 and the A1166. The former rig processes bitcoins’ hashes at speeds of 46-56TH/s, with an influence effectivity rated at round 57J/T, and a price ticket of $1,204. The latter prices $1,978 and performs at 66-68TH/s with an influence effectivity of round 47J/T. Both are anticipated to ship in February, in accordance with the corporate’s web site.
What do you consider Canaan submitting for an IPO within the U.S.? Do you assume the corporate will efficiently increase $400 million? Let us know within the feedback part under.
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Images courtesy of Shutterstock and Canaan.
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