Canaan Mining Raises $90M on First Day of Trading

The company managed to go public in the US, though in a more subdued manner than expected.

Canaan Mining completed the first day of trading on NASDAQ, raising $90 million in its stock debut. The expected IPO, done through a shell company, aimed for $400 million a few weeks back, only altering the documents at the last moment to predict $100 million.

Canaan Creative listed its shares at $9 initial price, valuing the IPO at $90 million. Under the ticker CAN, trading took off to a peak at $11.23, with a slide soon afterward. For a few hours, CAN traded under the $9 initial price, and reached breakeven on Friday. CAN moved between a peak of $13 and a low of $8.21, and currently has a market capitalization above $1.41 billion. This valuation is a far stretch from the nearly $4 billion expected.

The listing of CAN became the first test for the demand of stocks based on Bitcoin (BTC) mining. The listing was considered a risk, especially with signs that mining BTC may be unprofitable.

Canaan’s flagship ASIC, Avalon, has an annual loss of above $762 based on current BTC prices and relatively cheap electricity. Investing in new machines, just as BTC market prices turn bearish, is also a challenge, especially for smaller mining operations.

Still, Canaan succeeded where the leader of ASIC production, Bitmain, still fails. Bitmain has reportedly filed IPO papers, but there is no sell date for the stock sale. Reportedly, Bitmain has posted its filing with the US Securities and Exchange Commission, desperately seeking new cash inflows. The IPO arrives at a moment of internal conflict with one of the company’s co-founders, Zhan “Micree” Ketuan, who preferred to focus Bitmain’s resources on R&D centers and AI.

The listing arrived during a day of shakedowns for BTC enthusiasts. Prices tanked on recent hawkish statements from China, as well as crackdowns on local crypto-related companies in Shenzen. The prices of BTC fell to as low as $7,077 on BitMex futures market, holding above $7,100 on other spot markets.

The Bitcoin network hashrate also fell significantly, down to 86 EH/s, as most mining activity fell in the hands of the largest pools. Bitmain’s influence in mining is also lower, as the company’s Antpool loses positions and produces less blocks recently.

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