Canaan’s $400 Million IPO Application Expired

Hong Kong Stock Exchange (HKEX) removed crypto mining equipment manufacturer Canaan’s expired IPO application from consideration.

The application became obsolete this Thursday six months after filing. If Canaan wants to proceed with the IPO, they need to submit a new application updating their financial information.

Initially, Canaan intended to raise $1 billion during the public offering as they announced back in May. Later, the company reduced this goal to $400 million.

Reuters sources indicate that HKEX and other authorities have unanswered queries regarding Canaan’s business model and strategies, more specifically, the diminishing profitability of mining as well as the bearish market.

Canaan tried to hold IPOs back in 2016 and 2017 but couldn’t accomplish it due to the regulators’ approach. In 2018 other mining equipment manufacturers, Ebang and Bitmain also filed applications for IPO at the HKEX. Ebang IPO seems unlikely to happen this year but Bitmain is still following up with Hong Kong Securities and Futures Commission (SFC)

Only two weeks ago regulator introduced new rules for the companies managing crypto assets. If the company has 10% of their funds in crypto assets, they need to through a mandatory registration.

Bitcoin price is at the lowest since last year and it’s dragging all altcoins down with it. The market is bearish and it casts a heavy shadow over the business prospects of mining equipment manufacturers.