Canaan, a Hangzhou-based company that produces Bitcoin mining machines, has filed for an IPO on the NASDAQ under the ticker symbol “CAN” and is seeking to raise up to $400 million in capital. The company is one of the world’s largest Bitcoin mining machine maker along with Bitmain, who, according to a Bloomberg report in June, is also considering a US IPO.
Canaan had planned to list in Hong Kong last year, but according to The South China Morning Post, the city’s exchange deemed that cryptocurrency related entities were not mature enough for public trading in Hong Kong.
In their IPO prospectus, Canaan highlighted that they are not involved in cryptocurrency speculation, but are rather focused on the long-term research and development of diverse blockchain solutions. At the beginning of the filing, the company claims a mission “to make supercomputing available for everyone and enable the wide adoption of blockchain and AI technologies for better living.”
The company has recently reported $45.8 million in losses for the six months ending June 30, 2019, and net revenue of $42.1 million, compared to $25 million profit and net revenue of $275 million for the first half of 2018.
While the company claims to be committed to the longer-term R&D of blockchain technology, their R&D expenses decreased to 9.6 in 2018 from 25.1 million in 2017. The overwhelming majority of the company’s revenue is generated from the sale of their mining equipment, while its other revenue segment consists of fees from maintaining the equipment and has a negligible impact on the company’s bottom line.