Chinese Mining Company Canaan Reportedly Applies for IPO with the US SEC

Canaan Creative, one of the largest manufacturers of Bitcoin miners in China, has allegedly filed an application for a $200 million initial public offering (IPO) in the U.S.

The news was reported on July 31st via a blog posting on local social media platform – WeChat – by an official account named “IPO Zao Zhi Dao,” claiming that the company had already secretly submitted the application with the U.S. Securities and Exchange Commission (SEC).

According to people with knowledge of the matter, the Chinese manufacturer is seeking to raise $200 million through the public listing. Despite being less known in the west than its competitors such as Bitmain, Canaan is one of the three main Chinese Bitcoin mining players, the third being Yibang International.

Canaan’s first attempt to go public was during March 2018 when the Chinese manufacturer was seeking to file for a $1 billion IPO on the Hong Stock Exchange. However, the plan was later dropped by the company and the company’s Hong Kong Stock Exchange IPO application became void in November 2018.

Earlier this year, there were reports that Canaan was considering an IPO in New York, although the process was in its early stages. According to SEC’s new rules implemented in July 2017, companies in the US can make confidential filings of any size. The changes were made in an effort to encourage more IPOs. Prior to that, only smaller companies were allowed to file private applications.

In March, it was reported that the firm was considering an IPO attempt on the newly created Science and Technology (Sci-Tech) Innovation Board within the Shanghai Stock Exchange, in addition to its talks with the New York Stock Exchange and NASDAQ.

Notably, in March Canaan Creative had raised additional capital in its latest funding round, however the exact amount was not made public. The funding came from all existing backers as no new investors reportedly came on board. Following this news, this would make Canaan as the first Chinese market participant to successfully take its case to the U.S. market.

Meanwhile, Canaan is not the first Bitcoin (BTC) manufacturer to consider filing an IPO. Cryptocurrency mining giant Bitmain had earlier filed for an IPO, however failed to make a bid with the Hong Kong Stock Exchange. Following that, Bitmain was reportedly considering filing an application in the U.S. with the SEC as of the end of June. Rival mining manufacturer Yibang’s attempt at filing an IPO with the Hong Kong Stock Exchange had also met with rejection.

At the time of Bitmain’s failure in December 2018, many strongly believed that the then highly volatile nature of BTC was the reason which gave regulators cold feet. The month prior to that, mining had suffered as BTC prices plunged, leading to significant shifts as participants attempted to stay financially stable.

Six months later, the landscape had transformed, with Bitcoin seeing a dramatic reversal of fortunes across the mining industry.