Well you know what they say, if you fall down, you get up and try again. That seems to be the advice that Canaan Creative has taken extremely serious.
Currently the world’s second-largest manufacturer of cryptocurrency mining hardware, this company is now allegedly planning to conduct their IPO in the United States instead of Hong Kong, where they hit a roadblock.
Canaan had previously applied to list on the Stock Exchange of Hong Kong. However, that plan did not work out the way they expected it to, since the application lapsed. With an impressive list of names on board as sponsors, like Credit Suisse, CMB International Capital, Deutsche Bank and Morgan Stanley, the failed attempt was unfortunate.
Which is why, the ASIC manufacturer is now considering the possibility of holding its IPO in New York, out of all places. This plan may materialize by the end of the first half of this year, but since the discussions are still at an early phase, there is a possibility that the entire thing might be called off.
When talking about the Hong Kong fiasco, word on the market is that there were concerns raised about the business model of Canaan by local regulators and the Stock Exchange of Hong Kong.
Forecasting the financials of the firm was another major concern, due to the market conditions at the time. The rate at which the price of Bitcoin fell, it was difficult to estimate the financials of the firm, let alone sell them at an IPO.
Due to the market’s massive downturn, the firm had also reportedly slashed its IPO target amount by 80% from approximately US$2 billion to US$400 million.
Also, with Bitcoin mining becoming less profitable, the demand for cryptocurrency mining rigs had also gone down.
This could explain why the previous attempt to list the company’s IPO in Hong Kong did not really go as expected.
However. here’s hoping that Canaan is finally able to list its IPO in New York and raise the required funds.