Mining company Canaan Creative may go public in the U.S. on November 20 with a valuation of $1.5 billion

On October 10, a screenshot of a certain Daxinbao APP circulated online showed that Canaan Creative, the world's leading mining machine manufacturer, will be listed in the United States in mid-November, intending to issue 126 million new shares with a valuation of US$1.5 billion. Two weeks ago, Odaily Planet Daily also learned from a source that "Canaan Creative has indeed completed the listing process."

On July 31, according to IPO Early News, Canaan Creative has secretly submitted an application for listing to the U.S. Securities and Exchange Commission (SEC), raising $200 million, becoming the first mining machine manufacturer to go public in the United States (other manufacturers with similar plans include Bitmain and Ebang International). According to Tencent News "First Line", Canaan Creative plans to choose the New York Stock Exchange as the listing location.

Just two weeks ago, Kong Jianping, co-director of Canaan Creative, talked about listing in the United States in an interview with the media. He said that the US SEC actually knows a lot about digital currency and blockchain, and listing in the United States needs to comply with its rules. As long as the compliant companies are listed in the United States, it is possible. Perhaps, after Canaan Creative, we will soon see Bitmain and Ebang International listed on the US stock market.

It is worth noting that Canaan's valuation of $1.5 billion seems to be discounted from the billions of dollars reported earlier. In March this year, Securities Times quoted an insider as saying that Canaan had just completed a round of financing worth hundreds of millions of dollars, with a post-investment valuation of billions of dollars.

With the three-fold increase in Bitcoin in the second quarter of this year, Bitcoin mining machines have also been out of stock, causing many mining machine manufacturers to make a significant recovery. Canaan Creative's current mining machines are mainly 8nm and 16nm Avalon A11, A10 and A9.

Canaan Creative first released the industry's next-generation "core technology" 7nm mining machine in September last year, but has yet to put it into mass production. In response, Kong Jianping told the media in September, "We will gradually mass produce some 7nm mining machines this year, but large-scale market launch will probably take until next year."

In addition to mining machines, Canaan Creative's other major business is AI chips.

Regarding this revenue, Kong Jianping said, "We just launched it last year and only sold 100,000 yuan. Because we don't know much about this environment, and AI chips have a cycle. Unlike mining machines that can run as soon as you plug in the power, it is necessary to continuously adjust the algorithm model on the small chip. The general cycle is 6 to 12 months, and then we will mass produce these devices. This year, we have tens of millions of orders (for AI chips), and there are also some orders to be finalized. If signed, the shipment volume may reach hundreds of millions."

Since 2016, Canaan has been seeking listing, from A-shares, NEEQ, Hong Kong stocks, and not excluding the Science and Technology Innovation Board, and now the US stocks. If the news is confirmed, the three-year listing journey of this large mining company will come to a successful conclusion.