World's Second Largest Bitcoin Mining Company Raises $90M in US IPO

The world’s second-largest bitcoin mining equipment producer, Canaan Inc., raised $90 million during its initial public offering (IPO). 

According to Bloomberg, the Chinese company based in Hangzhou sold 10 million American depositary shares at the $9 apiece on Nov. 20. The filings with the US Securities and Exchange Commission (SEC) show that the shares have been marketed for $9 to $11.  

The mining equipment firm had originally planned to raise around $400 million in October, however, there was a minor setback. The company lost its lead underwriter, Credit Suisse Group AG before the deal was launched as shown in the filings. 

The IPO was led by Citigroup Inc., China Renaissance Holdings Ltd., and CMB International Capital Ltd. The shares will be available for trading starting Nov. 21 on the Nasdaq Global Market under the ticker CAN.  

A week before the IPO, the mining company suffered a huge blow, resulting in a much lower amount raised than expected, which was around $200 million to $400 million.  

Earlier this year, China had plans to ban bitcoin mining. However, with the recent pivot with Chinese President Xi Jinping endorsing blockchain, the National Development and Reform Commission deleted Bitcoin mining and cryptocurrency mining from the list of industries that China should ban. This resulted in a key development for Canaan as well as the fact that Bitcoin has been increasingly difficult to mine.  

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