Crypto Firm Canaan Teams Up With West Texas Bitcoin Mining Firm to Boost Its Operations in Texas

Bitcoin (BTC) mining Canaan has entered into a joint mining agreement with Luna Squares Texas, a Texas crypto mining firm

Bitcoin (BTC) mining hardware manufacturer Canaan is expanding its North American footprint via a new collaboration with a West Texas Bitcoin mining firm.

The partnership will see both companies sharing Bitcoin revenue generated from Canaan’s Avalon mining machines, with the revenue split varying depending on the model, as per a Nov. 20 press release from Canaan.

For Avalon A14 Series machines, both companies will receive 50% of the revenue, while for Avalon A15 Series machines, Canaan will initially receive 70% of the revenue to recoup capital costs, after which the split will revert to 50% for each party.

The collaboration aims to boost Canaan’s mining operations in Texas and contribute to its goal of achieving 10 EH/s capacity by mid-2025.

“We continue to expand our footprint in North America, and this collaboration will foster mutually beneficial relationships and contribute to industry stability,” said Nangeng Zhang, chairman and chief executive of Canaan.

As part of the collaboration, the Willow Wells site, which is operated by LS Texas’ staff and is slated to be powered up in Q1 2025, will house a combination of 3,480 Avalon A14 and 5,664 Avalon A15 machines, providing around 1.62 EH/s of computing power once fully operational.

Following the announcement of the collaboration, Canaan shares rose 3.77% in pre-market trading on Monday, according to Nasdaq data.