News update.
It appears that the expectations on this IPO did not meet the hype. Canaan raised less than 1/4 of what the company wanted.
Why did they do this during a bear market?
In November, it raised $90 million in its underwhelming IPO, slashing its original $400 million fundraising goal by 77.5%.
Source https://www.theblockcrypto.com/linked/50015/canaans-ipo-is-more-symbolic-than-substantial-to-the-crypto-industry-says-expert
Topic: [2019-10-29] Avalon Bitcoin Miner Maker Canaan Officially Files for $400 Million (Read 342 times)
December 10, 2019, 08:05:55 PM
December 01, 2019, 08:37:10 PM
-snip-
Yeah, my statement was more of a why the US instead of China justification. I agree that the current market sentiment doesn't bode well for any crypto IPO, much a less mining related one with all the environment friendly narratives nowadays (the media is going to rip this to shreds as soon as they get a whiff). Not that mining is necessarily bad for the environment, just that the world seems to be stuck with that mindset, but I digress.
November 29, 2019, 05:46:54 AM
Either way, why not the US? It has been far more open to the crypto industry as a country than China is, so they stand to raise more money.
it depends on the state of the bitcoin market. in these bearish conditions, canaan couldn't even raise 1/4 of its IPO target---the public launch was very much a flop. timing is everything!
the compliance costs of IPO'ing in the USA are pretty astounding too. underwriting, legal, auditors, exchange listing and SEC registration fees, incorporation and other organizational costs, etc etc.......we're talking millions of dollars. https://www.ipohub.org/costs-going-public/
there are jurisdictions with less red tape and regulatory costs/scrutiny. that's one angle to consider anyway.
November 29, 2019, 04:14:36 AM
I am thinking of the same, why are these China-based companies are filing their IPOs in USA? I am referring to Bitmain and Canaan. Can be because these companies are not so keen and confident on their own government and that one day the government will eventually decide against Bitcoin mining?
To be fair, Bitmain also tried filing an IPO in China (well Hong Kong, technically) but failed to do so. There were a lot of concerns about its approval from the start because of the lack of regulatory framework in the industry, as the link mentions. Maybe Canaan would rather not waste resources on something Bitmain has already failed?
Either way, why not the US? It has been far more open to the crypto industry as a country than China is, so they stand to raise more money.
November 29, 2019, 12:13:48 AM
I am thinking of the same, why are these China-based companies are filing their IPOs in USA? I am referring to Bitmain and Canaan. Can be because these companies are not so keen and confident on their own government and that one day the government will eventually decide against Bitcoin mining?
China has stronger capital controls than the US and the latter has stronger rule of law, doing an IPO abroad gives them more flexibility in managing their finances.
November 28, 2019, 11:50:28 PM
Not sure about their choice of country. Why would a Chinese mining company be filing for an IPO in America, especially with so much tension between the 2 companies, not sure why they wouldn't just go back to China, what does everyone think?
I am thinking of the same, why are these China-based companies are filing their IPOs in USA? I am referring to Bitmain and Canaan. Can be because these companies are not so keen and confident on their own government and that one day the government will eventually decide against Bitcoin mining? Now, if I am an investor, I would be wary putting my money on this company and similar ones. How will an IPO like this affect the Bitcoin market? I think there is no correlation whatsoever as the market right now is more under the pull of China, whatever China is saying and doing can be affecting the movement of Bitcoin and the whole cryptocurrency market. Maybe if there is one thing this IPO signifies it is the fact that Bitcoin mining remains to be a robust and lucrative industry to go into though the dynamics have changed a lot compared to the early years of Bitcoin's existence.
November 28, 2019, 09:58:34 PM
How the hell can the shares of a company drop almost 10% a day after the initial launch?
No seriously, I simply can't understand this, someone explain this to me like in a "dump for dummies" edition!!
No seriously, I simply can't understand this, someone explain this to me like in a "dump for dummies" edition!!
Bitcoin price falling is likely to be a factor here, no one's going to be buying more miners if the price keeps heading downwards (and it has been for the past 5 months).
November 28, 2019, 09:19:37 PM
@figmentofmyass. This is what usually happens, very similar to ICOs. In any case, does the Nasdaq allow shortselling of newly listed stocks hehehe? That might also be another reason.
November 28, 2019, 04:31:11 PM
This is beyond my understanding
How the hell can the shares of a company drop almost 10% a day after the initial launch?
Oh, it's not almost, they have indeed dropped to 8.11.
Who the hell is selling at 10% discount the stuff they've just bought yesterday?
No seriously, I simply can't understand this, someone explain this to me like in a "dump for dummies" edition!!
Quote
Yesterday, Canaan Inc. (Nasdaq: CAN) a Chines crypto mining company, completed an initial public offering (IPO) of 10,000,000 American Depositary Shares (ADSs), each representing 15 Class A ordinary shares.Shares were issued at US $9.0 per share for a total offering of US $90 million. assuming the underwriters do not exercise their option to purchase additional ADSs. Shares in Canaan initially popped but have since dropped below the IPO price and now trade around $8.30 a share.
How the hell can the shares of a company drop almost 10% a day after the initial launch?
Oh, it's not almost, they have indeed dropped to 8.11.
Who the hell is selling at 10% discount the stuff they've just bought yesterday?
No seriously, I simply can't understand this, someone explain this to me like in a "dump for dummies" edition!!
that only considers the IPO investors, not traders on the open market. check out all the volume exchanged between $9 and $12.34 right at market launch:
some IPO investors dumped for a quick profit, while other speculators bought high. there was no sustained demand above $9 on the open market, so traders began unwinding positions and cutting their losses.
it's probably not IPO investors who are selling down here---unless the poor performance of the IPO and the stock price has shattered their faith.
November 27, 2019, 08:27:25 PM
@stompix. Similar to ICO listings. The investors who bought some shares directly from the company before listing day are dumping some of them because it is yielding profit hehe.
Hmm, yeah all my instincts point to the same explanation but.
This is no damn ICO, this is something regulated, inspected, lots of -ected.
I mean, common no matter how many flaws it has it's still Nasdaq, not yobit or mintpal, pulling this sort of stuff.
And this is nothing like the Facebook IPO which experienced also a drop, that one was overvalued at selling time, there was effectively no buying power left on the market with them throwing shares after shares but here we have single buy covered. If they really faked the IPO and sold the shares to themselves it would mean some kind of inquiry from the SEC sooner or later.
Lowest price 7.36 ...and Bitmain making black friday discounts!
The game might be run by different people, however, the game is similar with similar agendas. To sell for a profit and to get their funding from the public.
November 27, 2019, 11:32:56 AM
Anyone else interested in bitcoin mining in 2019?
November 27, 2019, 10:22:53 AM
@stompix. Similar to ICO listings. The investors who bought some shares directly from the company before listing day are dumping some of them because it is yielding profit hehe.
Hmm, yeah all my instincts point to the same explanation but.
This is no damn ICO, this is something regulated, inspected, lots of -ected.
I mean, common no matter how many flaws it has it's still Nasdaq, not yobit or mintpal, pulling this sort of stuff.
And this is nothing like the Facebook IPO which experienced also a drop, that one was overvalued at selling time, there was effectively no buying power left on the market with them throwing shares after shares but here we have single buy covered. If they really faked the IPO and sold the shares to themselves it would mean some kind of inquiry from the SEC sooner or later.
Lowest price 7.36 ...and Bitmain making black friday discounts!
November 26, 2019, 10:03:37 PM
@stompix. Similar to ICO listings. The investors who bought some shares directly from the company before listing day are dumping some of them because it is yielding profit hehe.
November 26, 2019, 09:05:28 PM
Another update here:
https://www.crowdfundinsider.com/2019/11/154392-crypto-miner-cannan-raises-90-million-in-nasdaq-ipo-shares-decline/
https://www.crowdfundinsider.com/2019/11/154392-crypto-miner-cannan-raises-90-million-in-nasdaq-ipo-shares-decline/
This is beyond my understanding
Quote
Yesterday, Canaan Inc. (Nasdaq: CAN) a Chines crypto mining company, completed an initial public offering (IPO) of 10,000,000 American Depositary Shares (ADSs), each representing 15 Class A ordinary shares.Shares were issued at US $9.0 per share for a total offering of US $90 million. assuming the underwriters do not exercise their option to purchase additional ADSs. Shares in Canaan initially popped but have since dropped below the IPO price and now trade around $8.30 a share.
How the hell can the shares of a company drop almost 10% a day after the initial launch?
Oh, it's not almost, they have indeed dropped to 8.11.
Who the hell is selling at 10% discount the stuff they've just bought yesterday?
No seriously, I simply can't understand this, someone explain this to me like in a "dump for dummies" edition!!
November 24, 2019, 06:37:56 AM
So this is still a go, but at the current state of the market, I'm not sure if it is doable at this point. Perhaps many will see this as an opportunity and could invest and provide the needed funding, however it's gonna be close, so let's wait and see how this IPO will turn out.
I doubt many investors are looking forward to anything related to crypto when the prices are tanking, which they have been for a while now. In that regard, I'm pretty sure that they will end up postponing their IPO, but even if they are going through with their plans anyway, there is still the SEC that could just put a stop to it, and that's quite a likely outcome.
Mining is such a competitive industry and depends on too many variables that investors throughout the years have always been better off buying Bitcoin directly.
November 22, 2019, 10:49:18 AM
Just an update:
https://www.coindesk.com/bitcoin-miner-maker-canaan-sets-100-million-target-for-us-ipo
So this is still a go, but at the current state of the market, I'm not sure if it is doable at this point. Perhaps many will see this as an opportunity and could invest and provide the needed funding, however it's gonna be close, so let's wait and see how this IPO will turn out.
Another update here:
https://www.crowdfundinsider.com/2019/11/154392-crypto-miner-cannan-raises-90-million-in-nasdaq-ipo-shares-decline/
Quote
Canaan, the world’s second-largest bitcoin miner maker, intends to raise about $100 million in its initial public offering (IPO) in the U.S.
The Hangzhou, China-based manufacturer of the Avalon bitcoin miner updated its IPO application with the U.S. Securities and Exchange Commission (SEC) on Wednesday. It’s aiming to offer 10 million American depositary shares (ADS) with each at a price of between $9 and $11.
The Hangzhou, China-based manufacturer of the Avalon bitcoin miner updated its IPO application with the U.S. Securities and Exchange Commission (SEC) on Wednesday. It’s aiming to offer 10 million American depositary shares (ADS) with each at a price of between $9 and $11.
https://www.coindesk.com/bitcoin-miner-maker-canaan-sets-100-million-target-for-us-ipo
So this is still a go, but at the current state of the market, I'm not sure if it is doable at this point. Perhaps many will see this as an opportunity and could invest and provide the needed funding, however it's gonna be close, so let's wait and see how this IPO will turn out.
Another update here:
https://www.crowdfundinsider.com/2019/11/154392-crypto-miner-cannan-raises-90-million-in-nasdaq-ipo-shares-decline/
November 01, 2019, 05:19:02 AM
In my opinion going public is not the right move for now and it will just do well in draining the resources they have by the time they pay the neccessary fees, legal fees and consultant fees and the initial price does not grow or traders in the market are not interested in trading the company's stock. The reasons are not far fetched.
1. As a company going to the market, there is need to have maintain some stability over the years in which a trend analysis can be computed to be able to predict the likely ROI for investors but from the analysis so far, this company clearly does not have it and there is a sharp change using two year comparison analysis.
2. The financial market is not ready for crypto related product because of the fear that of uncertainty from government and its regulatory agencies which means even after the right compliance, the stock market board can still refuse listing which will deal an heavy blow to their resources.
1. As a company going to the market, there is need to have maintain some stability over the years in which a trend analysis can be computed to be able to predict the likely ROI for investors but from the analysis so far, this company clearly does not have it and there is a sharp change using two year comparison analysis.
2. The financial market is not ready for crypto related product because of the fear that of uncertainty from government and its regulatory agencies which means even after the right compliance, the stock market board can still refuse listing which will deal an heavy blow to their resources.
October 31, 2019, 09:41:41 PM
Might be a bad timing for Chinese companies in particular to go public in the United States especially when there is a silent trade war going on with both countries. They are not even a public company in their own company yet and they still strive to go public in a foreign country where they are enemies with. I know that ones filed with their attractive IPO they'll get those US investors' money pouring in but the question is will the US SEC let them to do so? They might have a slim chance on this one but I won't get my hopes up especially when this news about an IPO started in February this year.
Good point, but perhaps Canaan wanted to be the first and is willing to take the risk to bring their IPO stateside so maybe, just maybe they could end up successful in the long run. The ball is now on the SEC, they have filed all the necessary documents all they can do it wait. Of course upon approval this can really put a lot of positive vibes in the market and competitions between Bitmain and Canaan will go on the next level.
I really don't think they are risking anything because they have nothing to lose in the first place. All you need to have an IPO in the stock market is reaching the minimum of 200 million market cap which I think would be pretty easy for them. But like I said the only thing that will be holding them back is the negative earnings they have and of course being a Chinese company wanting to enter in the US market, the SEC and the administration will just view it as the Chinese are taking money out from them.
Yeah, that's what I'm trying to say, risk in the sense that they will be the the first company to bring this kind of IPO in the US soil, so there's a possibility that it might be rejected. In other news,
Bitmain Seeking US IPO With Confidential SEC Filing: Report. So now the race is on, let's see who's going to get the first approval from US SEC.
October 30, 2019, 12:46:39 PM
Might be a bad timing for Chinese companies in particular to go public in the United States especially when there is a silent trade war going on with both countries. They are not even a public company in their own company yet and they still strive to go public in a foreign country where they are enemies with. I know that ones filed with their attractive IPO they'll get those US investors' money pouring in but the question is will the US SEC let them to do so? They might have a slim chance on this one but I won't get my hopes up especially when this news about an IPO started in February this year.
Good point, but perhaps Canaan wanted to be the first and is willing to take the risk to bring their IPO stateside so maybe, just maybe they could end up successful in the long run. The ball is now on the SEC, they have filed all the necessary documents all they can do it wait. Of course upon approval this can really put a lot of positive vibes in the market and competitions between Bitmain and Canaan will go on the next level.
I really don't think they are risking anything because they have nothing to lose in the first place. All you need to have an IPO in the stock market is reaching the minimum of 200 million market cap which I think would be pretty easy for them. But like I said the only thing that will be holding them back is the negative earnings they have and of course being a Chinese company wanting to enter in the US market, the SEC and the administration will just view it as the Chinese are taking money out from them.
October 30, 2019, 08:33:43 AM
The ball is now on the SEC, they have filed all the necessary documents all they can do it wait. Of course upon approval this can really put a lot of positive vibes in the market and competitions between Bitmain and Canaan will go on the next level. Speaking of Bitmain though,
Bitmain's IPO will not be approved as long as they have such a massive exposure to Bcash, which honestly is ridiculous because they basically went nearly all in on that coin, which they lost hundreds of millions with.I'm looking forward to their next release of coin holdings to see if Bitmain has been hoarding more Bcash, which is likely the case. It wouldn't surprise me if the latest report will expose how Bitmain is sitting on 2 million Bcash now....
October 30, 2019, 01:23:36 AM
Might be a bad timing for Chinese companies in particular to go public in the United States especially when there is a silent trade war going on with both countries. They are not even a public company in their own company yet and they still strive to go public in a foreign country where they are enemies with. I know that ones filed with their attractive IPO they'll get those US investors' money pouring in but the question is will the US SEC let them to do so? They might have a slim chance on this one but I won't get my hopes up especially when this news about an IPO started in February this year.
Good point, but perhaps Canaan wanted to be the first and is willing to take the risk to bring their IPO stateside so maybe, just maybe they could end up successful in the long run. The ball is now on the SEC, they have filed all the necessary documents all they can do it wait. Of course upon approval this can really put a lot of positive vibes in the market and competitions between Bitmain and Canaan will go on the next level. Speaking of Bitmain though,
(https://www.coindesk.com/bitmain-turmoil-co-founder-and-director-micree-zhan-ousted-from-management)
Not the first one though, I remember that Bitmain has filed an IPO way back last year on the Hong Kong Stock Exchange but their application expired in March 2018 (and I think this contributes to Jihan leaving Bitmain) and then filed on US soil this June 2019.
However, Canaan, obviously a competitor has change the landscape again, so it's going to be interesting as to who's going to win in this race, the stakes are high here, and I do hope that it will bring a positive effect on the market.
I remember that Bitmain made a lot of buzz and splash with its IPO months ago. This time around, it is the turn of Canaan to offer its shares to the public. One of the subtle benefits with this is the sentiment that Bitcoin mining must be still a very bright industry with some more potential to exploit and of course, big money to be made. We don't know, however, how the marketplace will be receiving the Canaan IPO. I also notice there are are big news relative to Bitcoin mining these past many days. And this is happening just as the Bitcoin community is awaiting for the coming rewards halving in 2020. May I ask people here: Given the chance to buy some Canaan shares, would you do it and why?
October 29, 2019, 10:26:12 PM
Not the first one though, I remember that Bitmain has filed an IPO way back last year on the Hong Kong Stock Exchange but their application expired in March 2018 (and I think this contributes to Jihan leaving Bitmain) and then filed on US soil this June 2019.
However, Canaan, obviously a competitor has change the landscape again, so it's going to be interesting as to who's going to win in this race, the stakes are high here, and I do hope that it will bring a positive effect on the market.
I remember that Bitmain made a lot of buzz and splash with its IPO months ago. This time around, it is the turn of Canaan to offer its shares to the public. One of the subtle benefits with this is the sentiment that Bitcoin mining must be still a very bright industry with some more potential to exploit and of course, big money to be made. We don't know, however, how the marketplace will be receiving the Canaan IPO. I also notice there are are big news relative to Bitcoin mining these past many days. And this is happening just as the Bitcoin community is awaiting for the coming rewards halving in 2020. May I ask people here: Given the chance to buy some Canaan shares, would you do it and why?
October 29, 2019, 06:22:13 PM
Might be a bad timing for Chinese companies in particular to go public in the United States especially when there is a silent trade war going on with both countries. They are not even a public company in their own company yet and they still strive to go public in a foreign country where they are enemies with. I know that ones filed with their attractive IPO they'll get those US investors' money pouring in but the question is will the US SEC let them to do so? They might have a slim chance on this one but I won't get my hopes up especially when this news about an IPO started in February this year.
Good point, but perhaps Canaan wanted to be the first and is willing to take the risk to bring their IPO stateside so maybe, just maybe they could end up successful in the long run. The ball is now on the SEC, they have filed all the necessary documents all they can do it wait. Of course upon approval this can really put a lot of positive vibes in the market and competitions between Bitmain and Canaan will go on the next level. Speaking of Bitmain though,
(https://www.coindesk.com/bitmain-turmoil-co-founder-and-director-micree-zhan-ousted-from-management)
October 29, 2019, 05:53:04 PM
400 million. What the fuck? Only ICO I can think of that is bigger then that would be the telegram one, which raised over 1 Billion - but they are way bigger than this company.
Pretty sure they will hit it as well, it's a very good time for Chinese companies and investors, the market is really starting heat up for China, it's all been good news for them this week.
Not sure about their choice of country. Why would a Chinese mining company be filing for an IPO in America, especially with so much tension between the 2 companies, not sure why they wouldn't just go back to China, what does everyone think?
Pretty sure they will hit it as well, it's a very good time for Chinese companies and investors, the market is really starting heat up for China, it's all been good news for them this week.
Not sure about their choice of country. Why would a Chinese mining company be filing for an IPO in America, especially with so much tension between the 2 companies, not sure why they wouldn't just go back to China, what does everyone think?
October 29, 2019, 01:53:32 PM
Might be a bad timing for Chinese companies in particular to go public in the United States especially when there is a silent trade war going on with both countries. They are not even a public company in their own company yet and they still strive to go public in a foreign country where they are enemies with. I know that ones filed with their attractive IPO they'll get those US investors' money pouring in but the question is will the US SEC let them to do so? They might have a slim chance on this one but I won't get my hopes up especially when this news about an IPO started in February this year.
October 28, 2019, 08:38:38 PM
Avalon Bitcoin Miner Maker Canaan Officially Files for $400 Million US IPO
https://www.coindesk.com/avalon-bitcoin-miner-maker-canaan-officially-files-for-400-million-us-ipo
Not the first one though, I remember that Bitmain has filed an IPO way back last year on the Hong Kong Stock Exchange but their application expired in March 2018 (and I think this contributes to Jihan leaving Bitmain) and then filed on US soil this June 2019.
However, Canaan, obviously a competitor has change the landscape again, so it's going to be interesting as to who's going to win in this race, the stakes are high here, and I do hope that it will bring a positive effect on the market.
Here is the official document: https://www.sec.gov/Archives/edgar/data/1780652/000119312519276263/d773846df1.htm
Quote
Canaan Creative, the Avalon bitcoin miner maker and one of the world’s largest mining equipment manufacturers, has just formally filed another attempt to go public – this time in the U.S.
Canaan’s initial public offering prospectus filed with the U.S. Securities and Exchange Commission (SEC) on Oct. 28 indicates it intends to list on NASDAQ under the ticker name CAN and sets a placeholder amount of $400 million for the raise. The final amount of intended raise, valuation and price per share offering have not been decided at this stage.
The filing shows the Hangzhou, China-based bitcoin miner maker lost $45.8 million for the six months ending June 30, 2019, on net revenue of $42.1 million, compared to $25 million profit on net revenue of $275 million for the first half of 2018.
Canaan said net income in full year 2018 was $8.3 million on net revenue of $394 million, as the bitcoin price plunged in the second half of 2018 from above $6,000 to around $3,000, causing many bitcoin miners to be unprofitable to operate.
Canaan’s initial public offering prospectus filed with the U.S. Securities and Exchange Commission (SEC) on Oct. 28 indicates it intends to list on NASDAQ under the ticker name CAN and sets a placeholder amount of $400 million for the raise. The final amount of intended raise, valuation and price per share offering have not been decided at this stage.
The filing shows the Hangzhou, China-based bitcoin miner maker lost $45.8 million for the six months ending June 30, 2019, on net revenue of $42.1 million, compared to $25 million profit on net revenue of $275 million for the first half of 2018.
Canaan said net income in full year 2018 was $8.3 million on net revenue of $394 million, as the bitcoin price plunged in the second half of 2018 from above $6,000 to around $3,000, causing many bitcoin miners to be unprofitable to operate.
https://www.coindesk.com/avalon-bitcoin-miner-maker-canaan-officially-files-for-400-million-us-ipo
Not the first one though, I remember that Bitmain has filed an IPO way back last year on the Hong Kong Stock Exchange but their application expired in March 2018 (and I think this contributes to Jihan leaving Bitmain) and then filed on US soil this June 2019.
However, Canaan, obviously a competitor has change the landscape again, so it's going to be interesting as to who's going to win in this race, the stakes are high here, and I do hope that it will bring a positive effect on the market.
Here is the official document: https://www.sec.gov/Archives/edgar/data/1780652/000119312519276263/d773846df1.htm
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