Canaan Inc. (NASDAQ: CAN), a provider of computing
solutions, has made progress in several areas, including securing investments,
expanding its product offerings, and growing its mining operations.
Canaan Secures $30 Million
The company recently entered into a securities purchase
agreement, selling up to 30,000 Series A-1 Preferred Shares at $1,000 each to
an institutional investor. This agreement will raise $30 million to support the
development of digital mining sites and equipment in North America.
This follows a previous Series A financing, completed in
September 2024, in which Canaan sold up to 125,000 Series A Convertible
Preferred Shares.
CEO Nangeng Zhang highlighted the importance of these
investments in supporting the company’s growth and potential market
opportunities, particularly in relation to Bitcoin. The agreement includes
standard provisions, including indemnification clauses.
HIVE Orders 5,000 Miners
Canaan’s product development has also progressed, with high
demand for its Avalon A15-194T miners. The company entered a follow-on purchase
agreement with HIVE Digital Technologies to deliver 5,000 Avalon A15 miners in
the first quarter of 2025.
Canaan’s A15 series has been noted for its power efficiency
and plays a key role in the company’s expansion efforts, especially in North
America.
Zhang emphasized HIVE’s focus on environmental, social, and
governance (ESG) initiatives, which aligns with Canaan’s strategic focus,
particularly in meeting the rising demand for AI computing capacity.
Joint Venture Targets 10 EH/s
In addition to expanding its product offerings, Canaan is
strengthening its North American mining presence. Its subsidiary, Beet Digital
LLC, has signed a joint mining agreement with Luna Squares Texas LLC (LS
Texas). The agreement aims to expand Canaan’s mining capacity to 10 exahash per
second (EH/s) by mid-2025.
Under the agreement, revenue from Avalon A14 machines will
be split 50/50, while revenue from Avalon A15 machines will be split 70/30
until Canaan recovers its capital costs.
This partnership will involve the
deployment of 9,144 Avalon mining machines at LS Texas’ 30 MW site in Willow
Wells, Texas, by the first quarter of 2025. Additionally, Canaan has replaced
older mining units with 6,000 Avalon A14 series machines at Stronghold Digital
Mining’s Panther Creek facility, enhancing its overall mining fleet.
Q3 Revenue Soars 121%
Canaan’s financial results for Q3 2024 reflect strong
performance, with revenue of…
