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China Bitcoin Miner Maker Canaan Files for $400 Million IPO in the U.S.

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Chinese crypto mining giant Canaan Creative has filed a $400 million IPO, this time in the U.S. The Avalon bitcoin miner maker and one of the world’s largest mining equipment manufacturers.

Canaan’s IPO 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 and sets a placeholder amount of $400 million for the raise.

If successful, Canaan, which is one of the three major Chinese crypto mining companies alongside Bitmain and Yibang International, could become the first China-based mining firm to be publicly traded in the U.S. 

According to the SEC filing, Canaan generated $394 million in revenue in 2018, with a net income of $8.3 million. However, the company has experienced a total comprehensive income loss of $45.8 million in 2019. Chinese media this month pegged Canaan’s valuation at between $2 billion and $3 billion, with 126 million shares to be issued.

The filing marks the third attempt of Canaan in its efforts to go public, after its first and second trial in mainland China and Hong Kong, both fell through due to market uncertainties.

Bitcoin’s price jump this year has caused the demand for bitcoin mining equipment to outstrip the supply available from several major miner makers, which subsequently led to surging sales for leading manufacturers expects $400 million in revenue just for the third quarter of 2019.

Canaan’s competitor, Bitmain, on the other hand is also reportedly seeking to go public in the U.S. after its long-anticipated IPO failed in Hong Kong as the local exchange and regulators remained uncertain on its sustainability.

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