Bitcoin mining equipment manufacturer Canaan has attained a remarkable milestone after garnering $90 million in a U.S. Initial Public Offering (IPO). According to the data compiled by Bloomberg, the Hangzhou, China-based firm sold ten million American depository shares for $9 each on Wednesday, amounting to $90 million.
The news comes only a month after the company revealed its plans to go public with an IPO application in the United States. As earlier reported, Canaan had filed in an application for an Initial Public Offering (IPO) with a target of $400 million on the NASDAQ platform. However, the company later updated its IPO application, reducing the target to $100 million after its lead underwriter Credit Suisse pulled out from the project.
$90 Million After Pricing Below the Marketed Range
A recent report reveals that Canaan already garnered $90 million after it priced its U.S. IPO below its marketed range. The report further stated that the American depository shares were going for $9 per share and the company already sold 10 million pieces. According to the data from the U.S. Securities and Exchange Commission (SEC), the market price for the shares was between $9 and $11.
Judging by the results of the U.S. IPO, the efforts of the company towards an IPO are finally becoming successful. Previously, the Canaan had filed IPO applications in China and Hong Kong but failed because the company did not register significant financial credibility during that time. Besides, Hong Kong made it clear that it was a reckless move for crypto related firms to launch their IPOs in the Asian financial sector.
All the same, the mining rig manufacturer successfully launched its U.S. IPO. After raising the $90 million, Canaan is miles ahead of Bitmain, which are its direct competitors. Currently, the company is caught up in a civil war involving its founders.
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