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November 21, 2019

Big Bet on Bitcoin: Crypto Mining Company Canaan Raises $90 Million in US IPO

By Daily Hodl Staff

Canaan, the world’s second-largest producer of Bitcoin mining machines, just became the first major BTC miner maker to go public in the traditional stock market, raising $90 million in its US initial public offering.

The China-based company, a competitor of Bitmain, produces blockchain servers, ASIC microprocessor solutions and the Avalon Bitcoin miner under the slogan “Arm Your Farm for Bitcoin’s Bull Run” for the global market.

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According to data compiled by Bloomberg, the Hangzhou, China-based company sold 10 million American depository shares for $9 each on Wednesday. The company expects to sell one million miners in 2020 as Bitcoin’s halving event approaches.

Chen Feng, Canaan’s sales director, says big institutions are already invested in Bitcoin mining and multi-million-dollar preorders of miners are reportedly in the pipeline from institutional investors with prices ranging from $1,978 to $774.

The company first tried to go public in mainland China and Hong Kong, with both efforts failing.

Citigroup, China Renaissance Holdings and CMB International Capital led the offerings in the US. The shares are listed on the Nasdaq and are expected to begin trading on Thursday under the ticker name CAN.

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