Bitmain and Canaan file for IPOS in the US – Business Insider

Crypto hardware competitors Bitmain Technologies and Canaan Creative have filed to go public. The pair make application-specific integrated circuits (ASICs) that are typically used for crypto mining — the process of validating transactions and adding them to the blockchain.


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Bitmain has filed an initial public offering (IPO) application in the US with the Securities and Exchange Commission (SEC), reports The Block citing Tencent News. While how much Bitmain would look to raise is unclear, Bloomberg reported in June that it would be between $300 million and $500 million.

Separately, Canaan Creative, Bitmain’s biggest competitor, has publicly filed to list on Nasdaq, with Credit Swiss and City Group among its underwriters, per Reuters. The company is looking to raise $400 million via the IPO.

This isn’t the first time either player has tried to go public — and amid recent struggles, their latest efforts to IPO could falter once again.

  • Canaan has already tried to go public twice before. It tried to list in mainstream China through a reverse merger in 2016 and tried to float in Hong Kong last year; the firm failed in both instances because regulators had doubts about its business model and prospects, according to Reuters. Amid a decline in crypto activity since the boom in 2017, Canaan has struggled, having posted a loss of $48.2 million on sales of $42.1 million in the first six months of this year, per its prospectus cited by the Financial Times. For context, it posted a profit of $17.8 million in 2018, per Crunchbase. Given it’s failed to go public twice due to regulatory doubts about its business, it remains to be seen whether US authorities hold a different view to their Chinese and Hong Kong counterparts.
  • Bitmain, on the other hand, has struggled amid an internal power tussle. The company has the…

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