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Cyber Bitcoin
Edited by qqqpeter at 2019-11-21 22:21

Chinatimes.com reported that the world's second-largest bitcoin mining machine manufacturer, Canaan, has submitted a listing application to the US Securities and Exchange Commission (SEC), which will be listed on Nasdaq, USA on November 21. Pricing is $8 per share, $11, and plans to raise up to $110 million. It is expected to become the world's first listed manufacturer of bitcoin miners.

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Image from Coinrevolution.com

Sina Finance reported on the 18th that the latest prospectus shows that Canaan is a semiconductor company focusing on AI wafer research and development. As of the first half of 2019, Canaan was the world's second-largest designer and manufacturer of bitcoin mining machines, with Bitcoin mining machines accounting for 21.9% of the world.

It is worth noting that the road to the listing of Canaan is quite rough. The company tried to list in both China and Hong Kong. However, due to market uncertainty, it failed.

The amount of funds raised by Canaan’s intellectual funds has been adjusted from US$400 million to US$90 million - US$110 million. The price per share is US$9 to US$11, and the amount of funds raised by the previous application to the Hong Kong Stock Exchange has been significantly increased. Shrinking, the reduction rate is as high as 70%.

The report pointed out that the Bitcoin mining machine is the main source of revenue for Canaan. In 2017, 2018 and the first nine months of 2019, Canaan's sales of bitcoin mining machines and other mining machinery components accounted for 99.6%, 99.7% and 98.3% of its revenue, respectively.

As Canaan's business is affected by bitcoin price fluctuations, its performance has great instability.

According to the prospectus, in 2018, Canaan ushered in its heyday, and the annual revenue was RMB 2.705 billion, which was more than doubled from 2017.

However, as bitcoin prices collapsed, Canaan’s revenue in 2019 not only fell sharply but also net profit turned into a loss. As of the first half of 2019, Canaan's revenue was 290 million Chinese yuan, an annual reduction of 85% and a loss of 330 million Chinese yuan. In order to reduce the risk caused by the fluctuation of bitcoin price, Canaan has added AI chip business in recent years. It is planned to achieve a 1:1 ratio of mining machine and AI business in three years.
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