Business News Report
January 26, 2024

Bitcoin Miner Canaan Raises $50M to Advance Research and Development

Bitcoin Miner Canaan Raises $50M to Advance Research and Development

Crypto mining rig maker, Canaan announced that it successfully raised $50 million through the sale of preferred shares to an undisclosed institutional buyer. The announcement was made through an SEC Form 6-K filing.

The company plans to utilize the funds to advance its research and development initiatives, alongside covering operational expenses necessary for its continued growth trajectory. Canaan’s recent filing revealed that it successfully secured capital from an institutional investor through the issuance and sale of up to 125,000 series A convertible preferred shares. However, the identity of the investor remains undisclosed by the company.

Canaan, known for its Avalon-branded application-specific integrated circuit (ASIC) bitcoin mining rigs, has maintained its position as an industry leader since introducing the first publicly available ASIC miner in 2013.

Despite facing challenges in the market, including a decline of 88% in its shares since its initial public offering (IPO) on the Nasdaq Global Market in 2019, Canaan is working to innovate continuously. The company’s stock experienced a downturn of over 17% in the last five trading days against the U.S. dollar, reflective of broader market fluctuations.

Celebrating its tenth anniversary in 2023, the company unveiled two new mining devices, one with an impressive efficiency rating of under 20 joules per terahash, aligning with high-performance offerings from competitors like Microbt and Bitmain.

Additionally, Canaan’s market relevance was further solidified through a recent deal with Cipher Mining for the acquisition of 16,700 bitcoin miners, indicating ongoing demand for its products. While challenges persist in the stock performance arena, Canaan’s ability to secure funding amidst market turbulence underscores the company’s role in the bitcoin mining space.

Crypto’s Rising Demand for Mining Machines

UAE-based crypto mining company Phoenix Group collaborated with Whatsminer to acquire Bitcoin mining machines totaling $187 million from renowned crypto mining server manufacturer — Bitmain. The acquisition follows Phoenix Group’s collaboration with Whatsminer, disclosed in December 2023 and the company’s IPO on the Abu Dhabi Securities Exchange (ADX) during the same month.

The Bitmain deal serves to enhance Phoenix Group’s hashing power and market share. Moreover, Phoenix Group also maintains a commitment to environmentally friendly practices by incorporating hydro-cooling technology, a collaborative effort with both Bitmain and Whatsminer.

Similarly, Bitcoin mining company Cipher Mining acquired 16,700 new mining machines from the computing equipment production company Canaan. The latest generation of Avalon A1466 mining machines is set to be installed at the company’s Bear and Chief Mountain mining sites in Texas, thereby increasing its total self-mining capacity to 8.4 EH/s.

The purchase terms were negotiated between joint venture firms Bear LLC, Chief Mountain LLC where Cipher holds 49% shares, and Canaan.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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Kumar Gandharv
Kumar Gandharv

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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