Bitcoin prices have rebounded in 2019 (+122% YTD), and blockchain and cryptocurrency-focused companies are making their way to the IPO market.
California bank Silvergate Capital (SI), which takes deposits from digital currency businesses, entered the public market last week and is currently up 26% from IPO. Canaan (CAN), the world’s second largest producer of Bitcoin mining equipment, is scheduled to list its shares on the Nasdaq this week in what would be the first pure-play public equity in the space. The world’s largest, Bitmain Technologies reportedly filed confidentially for a US IPO last month.
It’s been a long wait. Silvergate Capital filed for an IPO last November, shortly before Bitcoin prices were nearly cut in half, and remained in the IPO pipeline for nearly a year despite having little direct exposure to Bitcoin. Around that same time, Canaan let its 2018 application for a Hong Kong IPO lapse, and the slump in prices drove its sales down 96% in the 1Q19. Sales have rebounded in step with the Bitcoin recovery, up 37% in the latest quarter, though the company still slashed its deal size by 75% when it set terms.
Additionally, recent IPO filer OneConnect Financial (OCFT) offers a tech platform for financial firms that includes blockchain services, the underlying technology behind cryptocurrencies. Spun out of Ping An, OneConnect was valued at $7.5 billion in a 2018 SoftBank round, and could IPO as early as December.
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| 4 Cryptocurrency and Blockchain IPOs | |||||
|---|---|---|---|---|---|
| Issuer Business |
US IPO Status |
Est. IPO Deal Size |
File Date |
Trade Date |
Total Return |
| Silvergate Capital (SI) | Trading | $40M | 11/16/18 | 11/07/19 | +26% |
| California commercial bank with a focus on digital currency businesses. | |||||
| Canaan (CAN) | On the Calendar | $100M | 10/28/19 | 11/21/19 | --- |
| Leading maker of cryptocurrency mining equipment. | |||||
| OneConnect Financial Technology (OCFT) | On File | $500M | 11/13/19 | Dec '19 | --- |
| Ping An-backed provider of operations management tools for financial firms. | |||||
| Bitmain Technologies | Filed Confidentially | --- | --- | --- | --- |
| Leading maker of cryptocurrency mining equipment. | |||||
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