One of the biggest bitcoin mining manufacturer is to IPO according to the unnamed sources of a credible China based local media.
They say Canaan Creative “will be listed in the U.S. in mid-November, people with knowledge of the matter disclosed.”
They apparently “secretly” filed an application in July with the Securities and Exchanges Commission (SEC).
Now they’ve finished all the procedures for an Initial Public Offering (IPO) with 1.26 billion shares to be issued at a valuation of $1.5 billion.
This remains unconfirmed and if indeed they are to IPO, there should be an official statement soon.
It would make it the very first crypto IPO in history with the listing ceremony having much fanfare as Wall Street would be covered with Canaan’s logos everywhere on the day.
From an investment perspective they claim to have secured orders for 500,000 units of their latest asics miners and aim for one million next year.
Their profits were just $88 million for the 2017 boom, however, based on the sale of 294,500 bitcoin mining machines for that year.
They’re considerably smaller than Bitmain, with Canaan accounting for only about 20% of the asics market. Yet mining is a game where much can change and very quickly, both for the better and for the worst.
If this does go public, it would be a proxy way of investing in bitcoin as Canaan’s profits would rise or fall with bitcoin’s price rise or fall provided there is decent management of the business.
As the very first, it would be the only way of easily investing in the bitcoin ecosystem through a US shares portfolio, but if they do get listed it is probable Bitmain, and the other big mining manufacturer, Ebang, would quickly follow.
As might Coinbase, which was rumored last year to be considering an IPO with their latest funding round probably leaving them little choice if they wish to raise more money.