Canaan Creative, a China-based company that manufactures bitcoin mining machines, recently raised $90 million in its Initial Public Offering (IPO), as reported by Bloomberg on Nov. 21.
The company had earlier revealed its intentions to file an IPO application in the United States that it was targeting at least a $400 million raise in the IPO offering.
However, just last week, Canaan lost its principal underwriter, Credit Suisse, a Swiss multinational investment bank and financial services company. It is believed that the exit greatly affected the size of Canaan’s IPO and thus prompted the company to update its application stating that it has a new target of $100 million.
As per the report, on Wednesday, the company sold an estimated 10 million American depositary shares for $9 per share. According to recent filings with the Securities and Exchange Commission (SEC), the United States regulator, the shares were marketed between $9 to $11.
The company had, on numerous occasions, put forward several proposals in Hong Kong, but they were turned down. In one instance, the Hong Kong exchange had conveyed that it was “premature” for crypto-related enterprises to go public in the Asian financial sector.
Looking at the bright side, the successful completion of this $90 million IPO has put Canaan ahead of its primary competitor, Bitmain.
Bitmain had earlier filed an application for an IPO with the backing of Deutsche Bank, but no mention has been made of it since then. Instead, there is an ongoing conflict between the co-founders of the company, Jihan Wu and Micree Zhan, albeit with something still being done to boost the company’s mining capacity.