Canaan Creative, the Avalon bitcoin miner maker and one of the world's largest mining equipment manufacturers, has just formally filed another attempt to go public – this time in the U.S.
Canaan's initial public offering prospectus filed with the U.S. Securities and Exchange Commission (SEC) on Oct. 28 indicates it intends to list on NASDAQ under the ticker name CAN and sets a placeholder amount of $400 million for the raise. The final amount of intended raise, valuation and price per share offering have not been decided at this stage.
The filing shows the Hangzhou, China-based bitcoin miner maker lost $45.8 million for the six months ending June 30, 2019, on net revenue of $42.1 million, compared to $25 million profit on net revenue of $275 million for the first half of 2018.
Canaan said net income in full year 2018 was $8.3 million on net revenue of $394 million, as the bitcoin price plunged in the second half of 2018 from above $6,000 to around $3,000, causing many bitcoin miners to be unprofitable to operate. Notably, it had a net loss of $16.7 million in the second half of last year.
this month pegged Canaan's valuation at between $2 billion and $3 billion, with 126 million shares to be issued.
Bitcoin's price jump this year has caused the demand for bitcoin mining equipment to outstrip the supply available from several major miner makers, which subsequently led to surging sales for leading manufacturers such as Bitmain, Canaan, and MicroBT. For instance, MicroBT, the maker of WhatsMiner, expects $400 million in revenue just for the third quarter of 2019.
Bitmain, on the other hand, is also reportedly seeking to go public in the U.S. after its long-anticipated IPO failed in Hong Kong as the local exchange and regulators remained uncertain on its sustainability.
Canaan co-chairman Kong Jianping image courtesy to Poolin event
Canaan earnings results via Edgar
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.