Crypto Mining Manufacturer Canaan Privately Files for U.S. IPO

Bitcoin mining manufacturer Canaan cryptocurrency IPO blockchain

Bitcoin mining hardware manufacturer Canaan Creative has confidentially filed for an initial public offering in the U.S., according to sources close to the company.

Canaan was unavailable for comment on the news, which has been reported via sources in local media in China.

One of the world’s largest manufacturers of mining equipment, the firm is reported to be looking to raise as much as $200 million from the listing, with rumors that the company is already in the process of filing in New York.

The Chinese mining firm had previously been linked with an IPO in Hong Kong, which had been targeting $1 billion. However, the application lapsed in November last year, following challenging trading for the firm amid a slump in bitcoin.

Since then, bitcoin has returned to health, and the firm has been linked to a further possible IPO on the Shanghai Stock Exchange.

The private filing in the U.S. starts a three- to four-month process to listing, during which relevant approvals will be required before the IPO gets the go-ahead.

If the application is approved by the U.S. Securities and Exchange Commission, the initial offering could be expected to launch later this year.

After a challenging year for the crypto mining sector in 2018, and support industries like mining equipment manufacture, the return to strength for bitcoin in 2019 has helped fuel a revival in fortunes for crypto industries and companies.

While other cryptocurrency and blockchain firms have successfully acquired listed companies in so-called “reverse mergers” to gain access to capital markets, the IPO would see Canaan become the world’s first listed major hardware manufacturer.

Canaan rival Bitmain failed in its initial attempt at an IPO in Hong Kong and is reported to be considering similar steps toward a listing in the U.S.

The news comes as cryptocurrency continues to become ever more mainstream. While traditionally reluctant to back cryptocurrency businesses, institutional investors are becoming increasingly interested in cryptocurrency, with the IPOs a further sign of maturity in the industry.

Canaan manufactures the market-leading Avalon range of mining rigs. Founded in 2013, the Beijing-based company employs around 100 staff.