After numerous failures in getting listed on the Hong Kong stock exchange, Chinese mining companies, Bitmain and Canaan are heading to the USA in their quest to be listed, with the United States Securities and Exchange Commission (SEC) and NASDAQ the prime targets for their initial public offering (IPO) attempts.
Bitmain targets NASDAQ
Bitmain, the leading crypto mining company in the world and the manufacturer of the Antminer range of miners, is looking to raise funds from United States-based investors. Local media outlets in China suggest NASDAQ, the second-largest stock exchange in the world, is the prime target.
Surprisingly, Bitmain has dramatically slashed the amount of funds it’s targeting to raise in the US IPO compared to its failed Hong Kong fundraising bid in March. In Hong Kong, Bitmain targeted 3 billion US dollars, but in its US IPO, the mining company is targeting anywhere between 300 and 500 million US dollars.
Canaan goes with the SEC for IPO
Interestingly, Canaan, the second-largest mining company in the world, seeks to be listed with the SEC, having submitted a “secret” application, according to Jinse. With its failed Hong Kong plans, Canaan targeted 1 billion US dollars. However, in the US, the mining company seeks to raise 200 million US dollars.
The makers of the popular Avalon Bitcoin miner spoke on the plan to be listed by the SEC:
“Compared with the HKEx, the SEC of the US Securities and Exchange Commission is relatively tolerant of cryptocurrency and mining operations, and has no biased regulatory requirements.”
More Chinese crypto companies seek IPO in the US
In what seems like a wave by Chinese crypto companies to go public in the United States, Maoqi Technology, another Chinese-based crypto company is targeting to be listed on NASDAQ. Maoqi Technologies had also tried its luck on the Hong Kong Stock Exchange but fell short like the others.
According to Wang Mingwei, the founder of Maoqi Technology:
“Maoqi Technology will seek listing on Nasdaq (but) the current listing is still in the initial planning stage.”
Perhaps these listings signify the health of the industry as a whole. The bear market that had crippled the community had made many unlikely and hesitant in their listing attempts.
IPO will signify a huge turnaround for Bitmain
In 2018 most of Bitmain‘s equity was owned by its earlier employees. Unfortunately, following the winter that hit the crypto market in 2018, most of the employees have abandoned their positions. Negative headlines were non stop, with reports of $500 million dollars of losses.
Luckily, 2019 brought a new wave of hope when the price of Bitcoin and other cryptocurrencies appreciated tremendously. At the beginning of last month, Bitmain was reported to have completed a fresh round of option incentives that “included a wider scope, in order to stabilize the new team after suffering a huge impact last year, and do business at the time of the bull market.”
The crypto mining giant noted that this year’s Bitcoin bullish momentum has led to the recovery of losses made during 2018’s bear market. Notably, the bear market had caused havoc in Bitmain’s mines, mining pools, and mining machines.
We will have to see if the three companies applications to NASDAQ and the SEC are accepted.