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.

Cryptocurrency Mining Startup Bitfury Looking at IPO Opportunities

Cryptocurrency-mining startup Bitfury is weighing strategic options for raising funds, which includes an initial public offering (IPO) in what could be Europe’s first major listing in the industry, according to people familiar with the matter. Reported by Bloomberg on Thursday, Bitfury is allegedly looking into listing in Amsterdam, London or Hong Kong, possibly as soon as 2019, however no final decisions have been made yet.

Accordingly, people familiar with the matter claimed that Bitfury is examining a range of options, which include raising debt financing as well as selling a minority stake. Should Bitfury go public within the next two years, its valuation could reach from $3 billion to $5 billion. However, the report also pointed out these valuations are “early estimates and could change depending on markets and the industry.”

The startup was founded in 2011 and it is known as the largest non-Chinese company that develops Bitcoin(BTC) mining hardware and provides infrastructure for BTC mining. The company also developed a more efficient algorithm for routing on the Lightning network called Flare, which operates as a secure off-chain channel for faster transactions with less commissions.

Most recently, Bitfury released its latest generation of Bitcoin application-specific integrated circuits (ASICs) for mining the world’s largest cryptocurrency by market cap last month, as well as an enterprise-grade Bitcoin miner earlier in October. It has also been working to build up a number of mining farms in Canada through its affiliate Hut 8 Mining Corp.

The company has apparently come into contact with several global investment banks around the world as it considers its strategic options for an IPO. Should the cryptocurrency mining startup launch an IPO, it would join fellow miner manufacturer Bitmain, which had announced just last month its own IPO on the Hong Kong Stock Exchange.

As of press time, Bitfury has not yet commented or given an official statement regarding this.

 

Bitcoin Mining Giant Bitman Has Filed for IPO on the Hong Kong Stock Exchange

Bitmain, the Beijing-based cryptocurrency mining behemoth, has officially filed to go public on the Hong Kong Stock Exchange (HKEX). Published on Wednesday, Bitmain’s long-awaited IPO announcement follows various news reports that the mining giant has been mulling a Hong Kong listing for a multi-billion dollar public fundraising. The IPO has now placed Bitmain in direct competition with Hong-Kong based Canaan Inc., which also filed for a $1 billion USD IPO in Hong Kong as well as with Ebang International Holdings.

As the process of transitioning from a private to a public company is already underway and currently pending further listing hearings from the HKEX, Bitmain has released their financial books for the first time, giving investors the possibility to assess the company’s financial status. The files disclose that Bitmain saw a profit of $742 million USD come in for the first two quarters of 2018. Seemingly, most of the revenue has come in from the sales of cryptocurrency mining hardware.

The mining company has expressed their objectives regarding the funds raised in the IPO, stating that the money will be eventually put into researching and development in order to increase its production output. As it seems, it is not clear yet which financial target Bitmain hopes to hit once the IPO is finalized. According to sources, the company is allegedly seeking to raise as much as $3 billion USD to $18 billion USD.

Additionally, the IPO could potentially provide Bitmain with opportunities that will allow the company to branch out into various industries. Nothing is yet clear however, as with the IPO finalizing anything could happen.

Nevertheless, CEO and co-founder of Bitmain Jihan Wu has alluded in an interview with Bloomberg to a possible branching out, citing that the next phase of the company would involve “advancing our technology beyond what we’ve already achieved”. Wu has offered that this might include artificial intelligence (AI), which is a typically non-cryptocurrency related industry. This certainly doesn’t necessarily confirm his plans, it merely just suggests the possibility of trying new things.

 

Bitmain raises $1 billion in pre-IPO funding round

Bitmain concludes its pre-IPO round

As reported by the QQ browser, Bitmain, the largest Bitcoin mining company and ASIC chip maker has concluded its pre-IPO round. In the process, the organization has raised over $1 billion.

The conjecture of secret IPO and Tencent’s interest in the company has been doing its roundabouts in the cryptocurrency industry. The central leading investors of the pre-IPO are Tencent, a Chinese multi-national investment company, Softbank, a Japanese global company and a mining organization China Gold. Conjointly they have invested $1 billion in Bitmain, consequently setting the company’s valuation at $15 billion.

Following their plans, Bitmain is intending to direct its IPO in the following couple of days and is set to apply for the IPO through the Hong-Kong Stock Exchange in September. By the end of 2018 Bitmain is set to be a publicly traded company.

Jihan Wu, CEO of Bitmain, has apparently been working on being listed on the stock exchange platform for a while now. The mining company has benefited the endorsing administration of CICC (‘China International Capital Corporation’) one of the major investment banking firms in China, for similar reason.

Bitmain has been in the spotlight in 2018

During their Series B, Bitmain has received around $400 million in funding. For the Series A financing round the following have been listed as primary investors: Sequoia Capital China, a venture capital firm, Coatue, an American Hedge Fund and EDBI, an investment fund. The firm has raised over $50 million through their Series A financing round.

Over the past half year the mining company has seen a constant and continual rise in profits. Only during its first quarter Bitmain has made a profit of more than $1 billion. After the disclosure of first quarter profits, allegations of secret mining have resurfaced. Nonetheless, the company has as of late disclosed four new policies, one of which underlines the practice of zero-tolerance against secret mining, claiming and guaranteeing to abide by the policy now and even in the foreseeable future.