Chinese Bitcoin Mining Giant Files $400 Million US IPO after Hong Kong Failure


  • World’s second-largest maker of bitcoin miners not intimidated by the China-US commerce warfare.
  • Canaan Artistic has didn’t listing in Hong Kong and mainland China.
  • Most up-to-date half-year outcomes registered a loss.

A risk by President Donald Trump’s administration to delist Chinese shares on the likes of the New York Inventory Change and the NASDAQ late final month appears to not have dissuaded the efforts of the world’s second-biggest producer of Bitcoin miners Hangzhou-based Canaan Artistic to IPO within the U.S.

In line with a Type F-1 submitting with the U.S. Securities and Change Fee, the Chinese maker of Bitcoin miners filed for a US IPO on Monday. It’s in search of to be listed on the Nasdaq World Market. Canaan Artistic intends to boost roughly $400 million.

The maker of Bitcoin miners didn’t, nevertheless, point out the IPO worth. Having generated revenues of beneath $1.07 billion over the past fiscal yr, Canaan Artistic has billed itself an ‘rising progress firm’.

Will maker of Bitcoin miners Canaan Artistic be third-time fortunate?

This isn’t the primary time that the maker of Bitcoin miners is making an attempt to listing publicly. Previous makes an attempt have included submitting for an IPO in Hong Kong in addition to in mainland China. Plan for a US IPO had been telegraphed firstly of this yr.

In Hong Kong Canaan’s efforts to listing had been thwarted by regulators who view the area as a ‘untimely’ sector, based on the South China Morning Submit. On the time, Canaan was in search of to boost two and a half instances what it’s at present aiming for.

Between the efforts to listing in Hong Kong and now, fortunes of the Bitcoin miner producer have plummeted. From the latest half-year outcomes, Canaan’s whole revenues fell within the six months that ended this June by 85.2% to $42.1 million vis-à-vis an analogous interval final yr. The online loss for a similar interval was $48.2 million. Throughout the identical interval final yr, Canaan recorded a revenue of $30.6 million.

Canaan tells all in its SEC submitting. | Supply: SEC

China’s ‘Eradicated Business’ for a way lengthy?

Within the prospectus, Canaan states that one of many largest dangers to its enterprise mannequin is fluctuations of the Bitcoin worth. Per Canaan, the market demand for its miners is straight correlated to the Bitcoin worth with a drop having a ‘unfavorable impact on the worth of our Bitcoin mining machine stock’. Going ahead Canaan has acknowledged that it expects the continued restoration in cryptocurrency costs to spice up the demand of its Bitcoin miners.

Different dangers that Canaan cites embody the unsure regulatory atmosphere it operates beneath in varied components of the world. Moreover, Canaan has additionally cited China’s classification of Bitcoin mining as an ‘eradicated business’ as a problem.

Canaan’s IPO efforts within the US are being underwritten by amongst others Citigroup and Credit score Suisse.

| Supply: SEC

This text was edited by Samburaj Das.

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