Canaan holds the title of first ever Bitcoin mining heavyweight to go public on a major US-based stock exchange, with a successfully recorded IPO.
However, business has not been well for the firm, stock-wise, ever since the November IPO, as Canaan’ stock price value has plummeted, from a promising figure of $13 per share on the launch date, to as low as $5.25, marking a 40% price drop.
Following the failed attempt to secure an IPO in Hongkong in 2018, Canaan refocused its plan to the US, with a primary goal of securing $400 million. However, the firm has been unsuccessful in its progress, and only managed to secure raise $90 million, 75% short compared to the initial plan.
The primary reason behind the failed attempt was that Canaan’s biggest supporter, Credit Suisse, has terminated the partnership one week prior to the IPO, mainly due to concerns regarding the possibility of the offering being able to secure sufficient orders.
Bitmain – Canaan’s major rival – has reportedly announced its application for an IPO with the US SEC in October 2019. Along with tech billionaire Wu Jihan coming back to take the mantle, Bitmain is bringing serious heat to the race for the top spot in the crypto mining market.