Less than a month after its listing, the first blockchain stock Canaan Creative’s share price nearly halved

As of the close of U.S. stocks on Monday, Canaan Inc.'s share price was $4.65, nearly half of its IPO price of $9.

With the halo of "the world's first blockchain stock", Canaan Creative (Canaan Technology) was officially listed on Nasdaq on November 21 this year. The initial offering price of Canaan Technology was US$9, the initial supply was 10 million, and the amount of funds raised was US$90 million.

However, on the day of listing, Canaan Inc.'s stock price experienced dramatic fluctuations, rising by 40% at the opening, with the maximum increase exceeding 44%. However, it fell below the issue price less than half an hour after the opening price was released, and once fell by nearly 9%, and finally closed down 0.11%.

However, for Canaan Inc., the stock price falling on the first day of listing was just the beginning.

Just the day after Canaan Inc. went public, the entire virtual currency circle ushered in a round of strong regulatory storm.

On November 22, the Shanghai headquarters of the People's Bank of China issued the "Strengthening Regulatory and Prevention Efforts to Crack Down on Virtual Currency Transactions", stating that it would carry out special rectification of virtual currency-related activities in Shanghai, and order problematic companies that were found to provide publicity, traffic diversion and other services to virtual currency trading platforms registered overseas to immediately rectify and withdraw.

Affected by the above-mentioned regulatory policies, Bitcoin fell below the $7,000 mark in just a few days, the first time since May.

As for Canaan Inc., the drop in Bitcoin prices will obviously have an impact on the company's revenue prospects.

The prospectus shows that in 2017, 2018 and the first half of 2019, the sales of Bitcoin mining machines and other Bitcoin mining machine parts and accessories accounted for 99.6%, 99.7% and 99.4% of Canaan Creative's total revenue, respectively, which shows the degree of Canaan Technology's dependence on the sales of mining machines.

From the day after Canaan Inc. went public, Canaan Inc.'s trading volume began to shrink sharply, with daily trading volume fluctuating around one to two million US dollars most of the time.

Even against the backdrop of continued surge in U.S. stocks and technology stocks, Canaan Inc.'s stock price still couldn't stop falling.

Chain Circle Observation, a subsidiary of Caiwen Private, noted that taking Monday Beijing time as an example, as of the close of trading, the three major U.S. stock indexes hit new historical highs, and most Chinese stocks such as Pinduoduo also rose sharply, but Canaan Inc. bucked the trend and fell 11.26%.

As of the close of U.S. stocks on Monday, Canaan Inc.'s share price was $4.65, nearly half of its IPO price of $9, and its total market value was only $735 million.

Previously, there were media reports that Canaan Technology's stock code is "CAN". Some people in the industry joked that because the code is a homophone of "miserable", its stock price performance is not satisfactory.

In response to questions surrounding the company and its stock price, Kong Jianping, co-chairman of Canaan Technology, recently responded at an industry summit that the overall environment of the capital market is indeed poor. Since July this year, no company with a particularly high fundraising amount has been listed in the United States. "In fact, from our own perspective, our secondary market performance on that day was quite good in the entire second half of the U.S. stock market, with an opening increase of more than 40%, although the closing price was a little below the issue price."

Kong Jianping said that when seeking to list on the Hong Kong stock market, investors at that time gave Canaan a valuation of more than 10 billion US dollars. Therefore, "compared with the past Canaan, we are now in a new bottoming stage."

Disclaimer: The content provided by the self-media is from the self-media, and the copyright belongs to the original author. Please contact the original author for permission if you want to reprint. The views of the article only represent the author himself, not Sina's position. If the content involves investment advice, it is for reference only and should not be used as an investment basis. Investment is risky, so be cautious when entering the market.

Editor-in-charge: Tang Jing