Crypto IPO Season: Race to Secure an Offering Heats Up

Most recently, SoftBank had to dish out a rescue package to the property company WeWork after its disastrous IPO bid fell apart.

OneConnect's IPO filing to the SEC reveals that the company reported at net loss of $147 million on a revenue of $218 million as of Sept. 30, which places doubt on the success of the filing.

The 2019 volumes represent a significant improvement on the figures from a year ago, amounting to $4.4 billion transfers in U.S. dollars in 2018.The company announced that it would price its IPO consisting of 3,333,333 shares of its Class A common stock at $12.00 per share on Nov. 6.

The IPOs of the two mining companies not only represents an important opportunity to assess the democracy that so many commentators in the crypto world believe is inherent to the technology, but also a litmus test for the industry as a whole.

Despite some shaky financial results, the company initially announced that it would aim to raise $400 million, according to an IPO filed with the SEC on Oct. 28.

Canaan was an early, albeit unsuccessful, adopter of a tactic now seeing increased usage among crypto-related companies: The reverse IPO. Regulators are often rightly suspicious of cryptocurrency companies, and buying already listed companies is seen as a way of sidestepping the fanfare of a direct public offering.

The date for Canaan's IPO is unspecified, but as time rolls on toward the firm's third attempt, all eyes are on the company's results.

Regulators were rightly cautious about the company's secretive financials and the Hong Kong IPO application was allowed to expire.

The IPO bid comes at a fragile time for the company, with co-founder Micree Zhan ousted from the company in a brutal coup led by co-founder Jihan Wu, allegedly without stakeholder consent.

Although the climate for crypto-related companies in China is improving, Bitmain will still have to answer some uncomfortable questions about its profitability, with Wu admitting to employees in a company-wide email that times had been hard for the company since the crypto winter of 2018.INXSilvergate, Bitmain and Canaan are all established names in cryptocurrency and beyond.