A fresh report suggests that the Chinese Bitcoin mining behemoth Canaan Creative has submitted an IPO in the USA. This would make Canaan Creative the first Chinese crypto mining company to file for an IPO in the US. Some are speculating that this may be an example of crypto mining firms rebounding.
Has Canaan Creative won the “crypto mining IPO race”?
The rumor that Canaan Creative may have filed for a US IPO reportedly originated on the social media platform WeChat. Specifically, a report on WeChat alleges that Canaan Creative has already sent its application to the SEC.
Moreover, this same report also reports that Canaan Creative has sought a $200 million initial public offering. If this is true, it would mean that Canaan Creative has beaten Bitmain to a cryptocurrency mining IPO.
This comes as Bitmain has also previously been loosely rumored to be interested in filing an IPO. Nevertheless, Bitmain was supposedly looking to file their ICO with the Securities and Exchange Commission in late June. If this latest report is true, however, it would mean that Canaan Creative is the first mining actor to file an IPO in the US.
Although Canaan Creative is largely unheard of in the west, the firm is reportedly one of the main Bitcoin mining actors in China. In fact, Bitmain, Canaan Creative and Yibang International are the leading Chinese crypto mining companies.
Are investments in the crypto mining sector heating up?
This rumored IPO is the latest in a series of recent funding efforts by Canaan Creative. Back in March of 2019, Canaan Creative raised additional capital in a funding round. Although the specific amount raised is unknown, all the investors in the round were reportedly existing backers.
Nevertheless, if Canaan Creative indeed files an IPO in the US, that means that it will now seek new outside investors. Market observers have been waiting to see what Chinese crypto actor becomes the first to breach the US IPO market.
Previous attempts by Canaan, Bitmain and Yibang International to file an IPO have all been unsuccessful. The three actors have also been unsuccessful in launching their offerings in Hong Kong.
This has previously led some crypto news outlets to proclaim that a “crypto IPO race” has started. Cryptocurrency miners faced some hard times during the past crypto winter. However, since the crypto market has rebounded, crypto mining companies have as well.
The fact that Canaan Creative now seems to be opening up to outside investors, along with the increased scrutiny this entails, could signify that the firm is looking to raise funds for large-scale future investments.
It remains to see whether confirmation that Canaan Creative has beaten Bitmain, which announced plans for its IPO in June, comes and if so when.
Image Source: Bitcoin News
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.