Bitcoin mining firm Canaan secures $90 million in US IPO

Bitcoin mining machinery producer Canaan Inc. has successfully managed to raise ninety million US dollars ($90 million) through the initial public offering (IPO) round conducted in the US.

Canaan Inc. managed to raise a few eyebrows recently when it recently declared its intentions of carrying out IPO application in the United States. The firm initially went public with its news to raise around four hundred million US dollars ($400 million) on Nasdaq. However, the China-based manufacturing company declared a much lower figure at a later stage when one of its primary bookrunners, Credit Suisse, backed out at the last minute. Thus, the firm went ahead with firms like Citi Group, Galaxy Digital, and few others as its underwriters and set out with a target of one hundred million US dollars ($100 million).

Bitcoin mining firm Canaan reaches close to its target

A week later, the firm successfully executed trade of approximately ten million American depositary shares, with each share costing nine US dollars ($9). Its recent filings with the United States Securities and Exchange Commission (SEC), the shares are sold within the range of nine to eleven US dollars ($9-$11).

Meanwhile, Canaan faced several hurdles with its IPO proposals in the far east. While a majority of these proposals failed to get underway in China due to lack of financial credibility, Hong Kong, went a step ahead in dismissing the firm’s intentions by stating that it is, in fact, a rash decision for cryptocurrency-related businesses to go public in the Asian market.

Thus, the successful capital injection puts Canaan way ahead of its direct rivals like Bitmain, who also secretly filed for an IPO with the SEC however got caught amid bitter power struggles in the firm.