- One of the largest Bitcoin mining rig producers, Canaan Creative, has officially applied to become a publicly-traded firm in the United States.
On Monday, Canaan Creative formally filed for an initial public offering (IPO) with U.S. Securities and Exchange Commission (SEC). According to the filing documents the mining giant would be listed on the NASDAQ exchange using the ticker name CAN. As per the documents, Canaan intends to be valued at $400 million. However, the valuation, as well as the prices of the share offering, are yet to be determined at this stage.
According to the documents, in July, Canaan had filed a $200 million IPO draft with SEC but this was never made public until this current filing on Monday.
If the SEC approves the IPO request, Canaan will become the first Chinese-based mining machine maker to publicly trade within the US.
Canaan’s main competitor, Bitmain had already applied to list as an IPO with the regulator after an IPO application with the Hong Kong Stock Exchange back in March that failed. The US application was done in June.
As per the documents filed with the SEC, Canaan’s revenues in 2018 were about $394 million, making a profit of $8.3 million. However, the firm had a loss of about $45.8 million in the current financial year.
CoinDesk reported that the recent filing marks the third attempt for the mining company to go public. The company had applied to be listed in Mainland China as well as Hong Kong but was denied approval as a result of market uncertainties.
Recently, Chinese-based media claims that Canaan’s valuation is between $2 billion to $3 billion and 126 million shares are set to be issued.
The recent spike in Bitcoin prices has led to a high demand for Bitcoin mining machines, more so than what was available from the miner makers, causing surge pricing. It is on this basis that major mining firms are seeking for IPO’s to finance the huge demand for their machines.