Canaan raises $50 million to expand ASIC miner production

The company has issued 50 000 preferred shares to an unnamed investor

26.01.2024 - 08:15

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What’s new? Canaan, a Chinese bitcoin mining rig maker, has raised $50 million through the sale of preferred shares to an unnamed institutional buyer, according to the company’s filing with the US Securities and Exchange Commission (SEC). The sale is part of an agreement announced last November under which Canaan committed to issue 125 000 convertible preferred shares and sell them to an investor at $1000 apiece.

Canaan’s report to the SEC

What else is known? On December 11, the $25 million first round of financing was closed. Canaan will use all proceeds from the deal for expansion, research and development, and operating expenses.

Canaan went public on Nasdaq on November 21, 2019, under the ticker CAN, raising $90 million in an initial public offering (IPO). However, to date, the securities have fallen by 89% from their original value, a YTD decline of 43%. As of January 26, CAN is trading at $1,45, having lost 6,45% in 24 hours.

In Q4 2022, Canaan’s revenue was falling by 60%, which CEO Nangeng Zhang attributed to the falling BTC price and low demand for mining equipment.

In September 2023, Canaan introduced a new Avalon A1466 unit with liquid cooling, an energy efficiency of 19,5 J/T, and a hashrate of 170 TH/s. BTC Cipher Mining later contracted Canaan to supply 16700 of these rigs by Q2 2024.

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