Canaan Updates IPO Filing and Reduces Target to $100M
NEWS
November 14  |  2 min read

Chinese Mining Giant Canaan Reduces IPO Target to Around $100M

The COIN360 Editorial Team

Chinese mining giant Canaan has updated its IPO application with the US Securities and Exchange Commission with an amendment 2 published on November 13, reducing the appetite for funding from $400 million to around $100 million.

According to the amendment, Canaan is seeking to offer 10 million American depositary shares (ADS) at the initial public offering. The company estimates the price per ADS to be between $9.00 and $11.00.

The net proceeds are expected to be “approximately US$87.7 million from this offering, or approximately US$101.7 million if the underwriters exercise their option to purchase additional ADSs from us in full,'' reads the amendment.

The net proceeds are planned to be used for R&D for ASICs related to Artificial Intelligence and blockchain algorithms, global expansion, supply chain optimizations, debts repayment, and general corporate purposes, reports the company.

The amendment states that the revenue in 2018 reached $378.5 million with net income of $17.1 million. For the first nine months of 2019 the company registered net revenue of $134.2 million and net loss of $33.1 million.

China-based bitcoin miner manufacturer Canaan filed for an IPO with the SEC on October 29. In the initial filing, the company indicated plans to raise $400 million.

If the initial public offering goes live, the firm could become the first major mining company to be publicly traded in the US, foregoing its competitor Bitmain, who reportedly considers an IPO in the US as well.