Chinese Bitcoin mining hardware maker Canaan files for the U.S. IPO

Canaan Inc, the second-largest manufacturer of Bitcoin mining machines with a 21.9% market share in H1 2019 filed for a U.S. IPO (Initial Public Offering). According to the filing, the company plans to target $400 million of capital raise and list on Nasdaq Global Market under the symbol ‘CAN’.

Proceeds from the offering will be used for research and development in the areas of AI and blockchain algorithms and applications, business expansion, establish overseas offices, and repayment of debts.

Canaan Inc’s rival Bitcoin miner maker, Bitmain is also seeking a U.S. IPO after all three big mining hardware producers failed in Hong Kong IPO attempt. It’s unclear if such a business is welcome in the U.S. market especially when Canaan’s financial statement for 2018 and 2019 does n’t look good.

As per the financial reports, Canaan’s total revenue in 2018 was $394.1 million with a net income of $17.8 million. However, compared with 2017, the net income in 2018 decreased by 67% and in H1 2019, Canaan had a net loss of $48.2 million.

Firms Credit Suisse, Citi group, China Renaissance, CMBI, Galaxy Digital Advisors LLC, Huatai Securities, and Tiger Brokers will serve as Canaan’s underwriters.