Mining Hardware Firm Canaan Raises $50M

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Canaan, a mining hardware company, successfully raised $50 million through the sale of convertible preferred shares.

A deal was made with an undisclosed institutional investor in November 2023 and the financing was received in two installments in December and January, as stated in a filing with the SEC.

The proceeds from the sale of securities will mainly be used for research and development, expanding production capacities, and for general corporate purposes, according to Canaan.

In September 2023, the company unveiled their latest Bitcoin miner with immersion cooling, the A1466I, which uses less than 20 J/TH – a major improvement in energy consumption compared to their previous models.

The company was now in close competition with established market leaders such as Bitmain and MicroBT. Canaan also expanded their mining operations to Kazakhstan in 2021, following the launch of their mining facility in the country.

This was preceded by the opening of their first service center outside of China. In the following months, the company continued to expand their mining activities to the USA.