Second largest mining hardware manufacturer, CANAAN INC. set for Nasdaq listing
Bitcoin mining manufacturer Canaan will ring the bell at Nasdaq on Nov 20. Canaan Inc filed for a U.S. Initial Public Offering (IPO) on Oct. As per the filing, the company plans to target a $400 million capital raise.
Canaan shares are expected to be listed under the symbol “CAN” in Nasdaq. Firms Credit Suisse, Citi group, China Renaissance, CMBI, Galaxy Digital Advisors LLC, Huatai Securities, and Tiger Brokers are serving as Canaan’s underwriters.
Canaan’s financial report and plans from the proceeds:
As per the financial reports provided to the U.S. SEC, Canaan Inc, the second-largest manufacturer of mining hardware with a 21.9% market share generated total revenue of $394.1 million with a net income of $17.8 million in 2018. 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.
Capital from the raise 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.
Opportunity to generate exposure:
Canaan Inc’s rival, Bitmain is also seeking a U.S. IPO. After a failed attempt in Hong Kong Exchange, Both Canaan and Bitmain filed for a U.S. IPO in H2 2019.
One of the reasons cited for the likely reason for Hong Kong exchange not listing Canaan IPO was the unfamiliarity of the crypto industry with the larger population. With the iconic bell-ringing ceremony at Nasdaq, Canaan has the unique opportunity to showcase the company on a global scale.
The listing is said to be one of the largest crypto-related IPO in the U.S. stock market and could provide meaningful exposure to the larger audience about the crypto industry.
