Canaan, a Bitcoin mining technology manufacturing company based in Hangzhou, China, is aiming to become the first public company in the cryptocurrency mining sector via a USD 100 million initial public offering (IPO) in the United States. This is according to an amended application filing submitted to the Securities and Exchange Commission (SEC). The USD 100 million IPO price is actually a downward revision from an IPO price of USD 400 million when the application was first submitted to the SEC in late October.
Canaan is the second-largest manufacturer of cryptocurrency mining rigs and is the primary rival of Bitmain. Aside from producing mining technology, Canaan also produces artificial intelligence (AI) technology and supercomputers.
Notably, Canaan has tried before to go public via an IPO in both China and Hong Kong. These attempts were rejected by regulators due to market uncertainty. Likewise, Bitmain has tried to launch an IPO as well, but the 2018 crypto bear market caused its application to be rejected.
It remains to be seen if the SEC will accept Canaan’s application, and the IPO price may be lowered further before a final listing occurs, especially because regulators are more likely to approve the IPO if it raises less money since that is equivalent to less risk for investors.
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