Over the past few years, a whole new ecosystem has emerged due to the staggering growth enjoyed by Bitcoin, and one of the more well-known constituents of that ecosystem is Bitcoin miner maker Canaan Creative. In a new development, it has emerged that Canaan has decided to go public in the United States.
Listing on Nasdaq
The company wants to be listed on NASDAQ, and according to the documents filed by Canaan, it wants to raise $400 million from the listing. Bitcoin mining is the backbone on which the entire cryptocurrency market is dependent, and Canaan is involved in supplying actual miners with the necessary equipment.
That being said, it is important to note that the company has not yet decided the final amount that it wishes to raise or the price it will be seeking for each share come the listing day. Canaan Creative, which is based out of Hangzhou in China, has revealed that in the full year of 2018, it had generated a net income of $8.3 million. The revenues for the same period stood at $394 million for the company.
However, it should be noted that the price of Bitcoin dropped markedly in 2018, and that resulted in many miners shutting down altogether. Hence, it is no surprise that the company lost as much as $16.7 million in the last six months of 2018.
Will Canaan Get the Approval?
Although Canaan Creative has filed its papers at the Securities and Exchange Commission, it remains to be seen whether the company can be successful in getting listed. The company has previously filed for listing in China and Hong Kong. On both occasions, the whole thing collapsed due to uncertainties related to the market.
While Canaan Creative has not revealed how many shares are going to be issued, Chinese media has revealed some of the details. It has been revealed that the company could issue 126 million shares and seek valuation in the $2 billion to $5 billion range.
Featured image: DepositPhotos © Melpomene
Author: Ankit Singhania