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Canaan Surpasses Bitmain in IPO Race with a 75% Less than Expected – Funding Round

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The leading mining equipment manufacturer of the Crypto industry Bitmain, which is also the company behind the world’s largest mining farm, had discreetly filed an application for an Initial Public Offering (IPO) with the United States Securities and Exchange Commission (SEC) last month.

This was the second attempt for Bitmain as the previous application to get listed on the Hong Kong Stock Exchange had lapsed six months after it was first submitted in September 2018. About the failed $3 billion IPO application, Bitmain said back then:

“We do recognize that despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value. We hope regulatory authorities, media, and the general public can be more inclusive to this young industry.”

The same was the case for mining equipment maker Canaan Inc, Bitmain’s rival. The company had also filed for an IPO worth at least $400 million at the Hong Kong Stock Exchange. The application met the same fate as that of Bitmain when it lapsed six months after it was filed due to regulatory uncertainty.

Marking its third attempt to go public, Canaan reportedly filed another IPO back in July seeking to raise a sum of $400 million on the Nasdaq exchange. The formal F-1 form wasn’t made public until last month. Eventually, the company would supposedly be valued at $2 billion to $3 billion. The application was later updated to state raising $100 million in equity shares of 10 million at a price ranging from $9 to $11 after it lost its lead underwriter, Credit Suisse Group AG.

Recent reports state that the mining giant has only managed to raise $90 million after it managed to sell 10 million of its shares priced at the bottom of its marketed range, for $9 per share. While many expected that the company would have met the targeted funding amount of $100 million, only 14 investors indicated an interest in 5% of the shares.

Despite the IPO not meeting the required target, it still marks Cannan as the first Bitcoin mining company to go public. Canaan has successfully beaten its rival Bitmain, which is still on hold regarding its planned $400 million IPO sponsored by financial giant Deutsche Bank. This event has laid the foundation to a bridge between the traditional industry and the world of cryptocurrencies. The only question at hand is will this bridge be able to hold off the regulatory load. 

Anna Larsen
Anna Larsen has been a Crypto enthusiast since 2016. Fascinated by the technology and its usecases she decided to pursue a career in content creation related to this space. The journey has been exciting ever since.

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