Canaan Wants To Build The First Blockchain Company oT Go Public In The US
Bitcoin mining machine manufacturer Canaan officially submitted its initial public offering to the U.S. Securities and Exchange Commission on October 29. The prospectus shows that the company intends to list on the Nasdaq under the ticker symbol “CAN” and hopes to raise up to $400 million in funding. The final fundraising amount, valuation and price per share are not yet determined. Previously, Canaan had prepared for China's new three board, A shares and H shares, all failed.
At present, China's three major bitcoin mining machine manufacturers are Canaan, Bitmain and Yibang International. Canaan is the first “Mining giant" to officially file for a U.S. IPO. Last year, Canaan tried to become publicly traded on the Hong Kong Stock Exchange but the deal fell through. At that time, Canaan’s proposed fundraising was $1 billion.
In terms of performance, Canaan's total revenue for 2018 was2.7 billion yuan, an increase of 106.8% from 1.38 billion yuan in 2017. In the same period, net revenue decreased from 375.8 million yuan to 122.4 million yuan, a year-on-year decrease of 67.4%. Canaan said that because bitcoin prices have plummeted from more than $6,000 to around $3,000 in the second half of 2018, many bitcoin miners were not profitable.
With the expected time to market, Canaan is also moving, and some listed companies are frequently hot.
Xiong'an Weicheng plans to purchase or accumulate blockchain equipment of up to $150 million on behalf of Canaan by Dec. 31, 2020. Canaan will provide Xiongwei Weicheng with preferential prices and technical guidance.
In addition, Jingu said it will cooperate with mining machine company Canaan. On October 28, China-listed company Zhejiang Jingu Co. Ltd. disclosed that it has signed a strategic cooperation agreement with Canaan. Jingu announced that under the agreement, Canaan’s subsidiary Hangzhou Jianan District Blockchain Technology Co. Ltd. will establish a joint venture with the Jingu’s subsidiary Teweilun Network Technology (Hangzhou) Co. Ltd. The two companies will use blockchain technology to trace a car’s repair and maintenance records. The joint venture company plans to launch with a capital of 10 million yuan, and the Tweed Network and Canaan will hold 51% and 49%, respectively.
It is worth mentioning that, stimulated by the news, the shares of Jingu opened on the daily limit on October 28, and then started to fall back, but still maintained at a high level, and finally closed at the daily limit.
In fact, since the release of the guiding spirit of the development of the national blockchain on Oct. 25, blockchain deals has flourished over four days. Many listed companies have begun to announce their association with blockchain. The cooperation between Xiong'an Technology and Jingu and Canaan is actually more conducive to the former two to seek attention from the capital market, and can be visually displayed from the stock price limit. However, some insiders also analyzed that in the case of Canaan's upcoming IPO in the U.S., the cooperation with listed companies is also an endorsement, which will help increase market influence and valuation to a certain extent.