Canaan, the Bitcoin mining manufacturer based in China, raised US$90 million in its IPO on the Nasdaq.
They say that if you fall off the bike, then get up and try again. That saying appears to be true for Canaan. The China-based Bitcoin mining manufacturer successfully launched its IPO this week on the Nasdaq, earning a total of $90 million in the process. The company had previously tried to launch an IPO in Hong Kong last year but was unsuccessful.
Try and Try Again
A year ago, the Beijing-based company was planning on launching a $1 billion IPO in Hong Kong. However, the city’s exchange deemed it was “premature” for companies in the cryptocurrency ecosystem to go public. The application for Canaan’s IPO lapsed in November 2018.
Undaunted, China’s second-largest manufacturer of Bitcoin mining equipment turned its eye to the United States. It originally planned on raising as much as $400 million during its IPO on the Nasdaq, but the company lost its lead underwriter, Credit Suisse, in early November.
Bloomberg reported that Credit Suisse had concerns that Canaan would not be able to gain enough orders during the IPO launch. The cryptocurrency mining company then scaled back its goal and launched last Thursday.
Up and Down
Canaan sold ten million shares at $9 each, netting it a total of $90 million. The news caused the company’s stock to soar, going from $9 all the way up to $12.54. At the end of the trading day, however, the stock price fell back to $8.99.
One possible reason for the reduced IPO goals is the ongoing volatility of the price of BTC. In late 2017, Bitcoin neared $20,000 in value. The price plummeted throughout 2018, dropping to just under $3,500. 2019 has seen a resurgence in value, but the last five weeks have seen Bitcoin drop from $10,100 down to $7,366 today.
While Canaan had hoped to sell shares for as much as $11 each, it can claim a victory over its rival, Bitmain, China’s biggest maker of Bitcoin mining equipment. Bitmain, just like…