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Bitcoin miner maker Canaan Creative raises $90 million in U.S. IPO

Yilun Cheng

On Thursday, Canaan Creative listed its shares on Nasdaq under the symbol “CAN,” pricing at $9, the low end of the expected range.  

As part of the initial public offering (IPO), the bitcoin miner manufacturer raised a total of $90 million by offering 10 million American depositary shares (ADS). Within the first hour of trading, shares traded as high as $11.23, before the price crashed back below $9 within 30 minutes.

This marks Canaan’s third attempt to go public after its plans in Hong Kong and mainland China fell through. On October 28, Canaan publicly filed for a U.S. IPO and set a placeholder target amount of $400 million, with Galaxy Digital, Citi Group, and four other companies as its underwriters. Credit Suisse, which was originally listed as one of the underwriters, dropped out recently. 

Based in Hangzhou, China, Canaan is the second-largest ASIC manufacturer after Bitmain, according to the firm's IPO filing. The filing shows that it generated $394 million in revenue in the 2018 fiscal year, with a net income of $8.3 million. It also reports a net loss of $45 million in the first two quarters of 2019 and a profit of $13 million in the third quarter. 

The increase in sales for Canaan, Bitmain, and other leading miner manufacturers partly comes from the Bitcoin’s price surge this year and the growing demand for bitcoin mining equipment. It was reported that Cannan’s main competitor, Bitmain, is also trying to go public in the U.S. after its IPO failed in Hong Kong due to local regulators’ doubts regarding the company’s sustainability.