Investors in Canaan Creative, a large Chinese Bitcoin mining firm, are reportedly abandoning ship as the company’s stock price plummets rapidly.
Data from Nasdaq shows the Canaan (CAN) stock price down by more than 12% over the last 24 hours. Indeed, the company’s stock has declined almost 25% since May 19, the expiration of its 180-day IPO lockup period.
So far, Canaan’s stock has fallen by about 50% year-to-date (YTD) and has been unable to attain its initial float price of $9. As previously reported by BeInCrypto, Canaan’s IPO massively underwhelmed, raising only $90 million out of a projected $400 million.
In its unaudited Q1 2020 financials published on May 22, the Bitcoin mining hardware manufacturer revealed losses of about $5.6 million. The company also declared that it will not provide a business outlook for Q2 2020.
Canaan is also the subject of a lawsuit with investors accusing the company of falsifying its revenues during its IPO filing. The claimants also say the Bitcoin mining rig manufacturer failed to disclose the ownership of outstanding shares controlled by a single entity.
The company may also face delisting from the Nasdaq stock exchange following a recently passed bill in the U.S. Senate allowing for the removal of ‘rogue’ Chinese firms from American markets.