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.

Wikipedia Co-Founder Jimmy Wales Calls Crypto Integration 'Insane'

  • Jimmy Wales called integrating cryptocurrency onto Wikipedia "insane."
  • The co-founder has turned down multiple proposals to incentivize content contributors with digital assets. 

Wikipedia co-founder Jimmy Wales said that it would be “insane” to integrate blockchain or cryptocurrency into the encyclopedia platform. 

Speaking at the CoinGeek Conference, Wales claimed that he has yet to see a single practical use-case for crypto that would convince him to integrate the technology into Wikipedia. Wales went on to say that adding bitcoin or blockchain to the world’s largest online encyclopedia could prove detrimental to its vision and damage how the platform currently operates. 

He said, 

This is a really bad idea. It's an idea that doesn't actually work. If you take something that is a bad idea and put it on the blockchain, that doesn't necessarily make it a good idea.

Wales made his comments opposite of Craig Wright, explaining that he has turned down several proposals for rewarding content contributors with digital currencies. The co-founder argued that Wikipedia benefits from volunteers and enthusiasts to curate content, as opposed to an incentivized structure that could be manipulated by companies. 

Creating a mechanism where you effectively authenticate that type of behavior ... isn't going to help with the quality of Wikipedia at all.

He concluded by saying that cryptocurrency could “seriously harm,” the platform, 

To say to them, you're going to have to pay or put money at risk in order to edit Wikipedia is completely insane.

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