Canaan Inc., a major Bitcoin mining machine manufacturer, recently turned heads in the crypto-industry after it was revealed that the organization was planning to go public with its Initial Public Offering [IPO] application in the United States. It was reported that the firm had filed in an application that set a target of raising over $400 million on Nasdaq under the symbol CAN. Later, however, Canaan updated its IPO application to state that it will raise $100 million, on the heels of its lead underwriter, Credit Suisse, quitting.
According to a recent report, the China-based entity has already raised $90 million after the company priced its U.S IPO at the bottom of its marketed range.
The report added that the firm completed a trade for an estimated 10 million American depositary shares for $9/per share. According to recent filings with the U.S Securities and Exchange Commission [SEC], the shares are marketed between the range of $9 to $11.
Canaan’s extensive efforts towards an IPO seem to be finally bearing some fruit. The company had put forward several proposals in China and Hong Kong, but a majority of them failed to take off as Canaan failed to register substantial financial credibility at that time. In fact, Hong Kong conveyed that it was impetuous for crypto-related business models to go public in the Asian financial sector.
The successful $90 million fundraising for its U.S IPO puts Canaan way ahead of its direct competitors, Bitmain. At the moment, the Bitcoin mining equipment manufacturing giant is facing civil war, with founders Micree Zhan and Jihan Wu on either side. The latest development might just put some more distance between the two rivals.
Biraajmaan is a full-time journalist at AMBCrypto covering the US market.