Crypto miner Canaan will be listed in the US in November

Crypto miner Canaan will be listed in the US in November

In July, Chinese crypto-mining service giant Canaan Creative filed for an IPO in the U.S., seeking to raise $200 million from investors. Now it is reported that the company will be listed by the middle of November.

According to a source, Canaan is expected to issue 1.26 billion shares which have been available for subscription starting on October 6, and will close on October 20.

The Chinese cryptocurrency mining giant set a valuation of between $2 billion and $3 billion after issuing the 1.26 billion shares. Should the company follow through with plans to be listed in November, they would become the first of the three Chinese crypto mining giants to go public within the country, jumping ahead of Bitmain and Ebang. All three have filed for an IPO application to go public in Hong Kong, but Canaan recently let their application lapse without continuing the process.

In a statement, Kong Jianping, the co-lead director of Canaan, explained that the United States Securities and Exchange Commission (SEC) has a very good understanding of both blockchain and cryptocurrency. This makes it easy for the company to remain compliant with regulations once they go public in the country.

While it looks like a done deal and the U.S., Canaan has not had a lot of success with IPOs. In 2016, they tried to list on the Shenzhen Stock Exchange using a backdoor listing. This effort was thwarted when they were unable to meet the regulatory requirements.

A year later, they submitted an IPO listing application to the NEEQ but would abandon their efforts in less than a year after finding the policy environment impossible to work with. Undeterred, they filed an application with the Hong Kong exchange in May 2018, but the company allowed it to lapse six months later.

It appears that their efforts now have been solely dedicated to getting up and running in the U.S. before attempting to file for an IPO in other countries.

Canaan was founded in 2013 and is known for producing the first crypto mining hardware in China, the Avalon miner. This miner is customized with superfast ASIC chips which has nearly removed computer mining from the process.

In 2017, the company reported that they shipped nearly 300,000 of these bitcoin mining machines across the globe. That gives them 20.9% of the entire global market share and they are currently the second-largest producer of all cryptocurrency miners.

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