Canaan Expands Bitcoin Mining Operations in North America

Canaan Inc. a developer of high-performance computing solutions, announced a partnership with Luna Squares Texas to advance operations for mining Bitcoin.

Canaan Inc. (NASDAQ: CAN) stock price rose 3.92% after announcing a strategic joint agreement for mining Bitcoin with Luna Squares Texas, aiming to increase its Bitcoin mining capacity in North America by not less than 10 EH/s in mid-2025.

Canaan Expands Bitcoin Mining Footprint in North America Canaan Inc., a developer of high-performance computing solutions, has announced a partnership with Luna Squares Texas to advance its Bitcoin mining operations.

This joint mining project will be situated at Luna Squares’ site in Willow Wells, Texas, which is currently under development and expected to launch by Q1 2025. Canaan plans to install 3,480 Avalon A14 and 5,664 Avalon A15 miners at the location.

Upon commencement, this planned site will contribute a total hashrate of 1.62 EH/s to the network.

On this basis, the parties have agreed to an equal revenue sharing arrangement, which will be derived from the Avalon A14 machines. Canaan will initially receive 70% of Avalon A15 revenue until capital costs are recovered, at which point the revenue will be split 50/50.

This collaborative effort aligns with Canaan’s strategic plan to expand its North American market presence and enhance its mining efficiency.

Strong Financial Performance Backs Strategic Initiatives The expansion affirmation follows Canaan reporting strong Q3 2024 financials, which saw total revenue reach $73.6 Million, up 120.9% year-over-year.

Mining operations were recorded to have contributed $9 Million to the company’s total revenues and 147 Bitcoins for the quarter.

Canaan also saw its highest sales of computing power in 11 quarters as it sold 7.3 million TH/s of computing power.

Highlighting the objective of strategic collaborations and greater mining capabilities as key factors that can spur the firm’s growth, Nangeng Zhang, Canaan’s CEO said,

“The recent expansion of our self-mining activities across Texas and Pennsylvania underscores our commitment to strengthening our mining presence in North America.”

This objective aligns with the partnership with Luna Squares, as West Texas offers low power costs and favorable conditions for operations.

Strengthening Market Presence in Mining Canaan aims to increase its mining capacity to achieve a clearer market strategy in delivering Bitcoin mining solutions.

In addition to the Luna Squares partnership, the company is enhancing its mining footprint in Pennsylvania through an agreement with Stronghold Digital Mining.

This agreement will see older models being replaced with 6,000 Avalon A14 units, aiming to reach a combined computing power of 0.9 EH/s by the end of 2024.

Furthermore, Canaan has seen high market demand for its new units, with large orders coming in from clients such as CleanSpark and HIVE.

With these developments, Canaan will be poised to benefit from growing Bitcoin prices and increasing global hash rates, as it aims to sustain growth in mining and hardware sales through its expanding operations and advanced product offerings.

This aligns with the company’s strategy, which saw it raise cash to reach $72 Million at the end of Q3, to be utilized for expanding mining infrastructure and innovations.