Cryptocurrency Miner Maker Canaan Raises $90 Million in U.S. IPO

Francisco Memoria

Cryptocurrency mining hardware manufacturer Canaan Creative has raised a total of $90 million in its initial public offering (IPO) in the U.S., selling shares at the bottom of the marketed range.

According to Bloomberg the Hangzhou, China-based company sold 10 million American depository shares for $9 each. As reported Canaan initially planned to raise $400 million via its IPO in the U.S., after failed attempts in mainland China and Hong Kong over uncertainties surroundings its prospects.

Soon after, an updated filing with the Securities and Exchange Commission (SEC) showed Canaan was looking to raise $100 million via the IPO, selling the shares at a price between $9 and $11 each. It's now listed under the ticker CAN.

The firm ended up failing to hit its target, after losing its lead underwriter, Credit Suisse, shortly before the deal was launched. Nevertheless, it still went public and is now listed on the Nasdaq, something other cryptocurrency miner makers who compete with Canaan, including Bitmain, failed to achieve so far.

Late last month, however, Bitmain quietly filed for an IPO in the U.S. with the SEC, in an application sponsored by German multinational Deutsche Bank. It isn’t clear how much it’s looking to raise, but in a previous attempt in Hong Kong it was going for $3 billion, but ended up failing.

Bitmain also tried going public in the U.S. before, looking to raise between $300 and $500 million. As the figure drastically drop since the Hong Kong attempt and crypto markets aren’t being too beneficial for miners, it could also drop again.

Featured image via Pixabay.