Mining firms are the bedrock of the cryptocurrency industry as they are the major route by which cryptocurrency enters the market and a lot of times, the fortunes of mining are a reflection of the industry itself. When the industry experienced significant bear runs, many mining firms were forced to close down shop or downsize due to a reduction in demand but once a bull run kicked in, their fortunes picked up as more people purchased mining equipment. As cryptocurrency continues to expand its dominance around the globe, it is expected that more people will mine cryptocurrency which will keep the mining sector alive.
On October 28, 2019, Canaan Creative, a Chinese crypto mining firm, filed with the US securities and exchange commission for a $400 million IPO and also plans to be listed on the stock exchange under the name CAN.
Apparently, the company had filed for a $200 million draft IPO with the SEC back in July but the information was only made public today. Canaan is one of three major Chinese crypto mining firms including Bitmain and Yibang international and should they be successful in this application, they will be the first Chinese-based crypto mining firm that would go public in the United States.
Bitmain had previously filed for an IPO in Hong Kong but the listing expired and then they filed in June 2019 for an IPO in the United States. The filing states that Canaan had a net income of $8.3 million in 2018 as well as $394 million in revenue. However, the company has seen a net loss of $48.9 million in 2019 thus far, according to official IPO filing documents.
In the last few years, there has been an interesting trend of more institutional support and money going into various cryptocurrency-related endeavours even as blockchain continues to see more widespread use. Should Bitmain or Canaan succeed in their IPO ambitions, it could open the floodgates for even more crypto-related firms going public in the United States and across the globe.