Bitcoin Mining Maker Canaan Shares Rise And Fall On Day One After $90M IPO
Bitcoin mining equipment maker Canaan Inc. (NASDAQ:CAN) made its trading debut on the Nasdaq exchange on Thursday.
The China-based company raised $90 million in an initial public offering on Wednesday by selling 10 million American Depositary Shares at $9 each.
Canaan’s shares surged up to 39.4% in the first two hours of trading at $12.54 before dropping. Its shares remained relatively flat for the rest of the day, closing at $8.99, a cent below its offer price of $9.
Why It Matters
This was Canaan’s third attempt to go public. The company unsuccessfully tried to do an IPO in both mainland China and Hong Kong last year.
Canaan is the world’s second-largest cryptocurrency mining equipment manufacturer after its Chinese compatriot Bitmain Technologies Ltd which controls a majority share in the market.
The company was looking to raise as much as $1 billion at the start of the year but humbled its goal significantly to $400 million in its latest filing in October.
Canaan further reduced its IPO target to $90 million after losing its key underwriter Credit Suisse (NYSE:CS), according to Bloomberg, as the bank was concerned "whether the offering could secure sufficient orders."
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