Canaan Secures $72M From BH Digital, Galaxy, and Weiss

Bitcoin mining hardware manufacturer Canaan Inc. has secured a strategic equity investment of $72 million from Galaxy Digital, Weiss Asset Management and Brevan Howard’s digital assets arm, Brevan Howard Digital.

the transaction, announced Marti will strengthen the company’s balance sheet and reduce its dependence on future capital increases at the market (ATM), he said. Under the deal, investors purchased 63.7 million American depositary shares, representing Canaan’s Class A shares at $1.13 each through a registered direct offering.

Founded in 2013, Canaan specializes in application-specific integrated circuit (ASIC) chip design and high-performance computer equipment. The company developed the first Avalon branded Bitcoin mining rigs in 2013 and listed on Nasdaq in 2019.

According to Canaan, the investment marks a change in its approach to capital markets, reflecting a move to collaborate with investment companies focused on fundamentals.

At the time of writing, Canaan’s share price was up about 9% in intraday trading on Nasdaq, according to Yahoo Finance.

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Canaan doubles core business

While many Bitcoin mining companies have diversified into artificial intelligence and high performance computing (HPC) to boost revenue, Canaan has strengthened its focus on Bitcoin mining hardware and infrastructure.

In June, the company said it was discontinuing it efforts to produce AI hardware. Canaan President and CEO Nangeng Zhang told Cointelegraph that the most strategic path for the company is to double down on its “core strengths in cryptographic infrastructure and Bitcoin mining.”

Canaan also said in June that it completed a pilot production run in the United States as part of its efforts to reduce delivery times to customers in the region. The company’s shares rose more than 26% in October after announcing a Order of 50,000 rigs from an unnamed US companyits largest order in more than three years.

The United States accounts for nearly 38% of global Bitcoin hashratewith six of the 10 largest publicly listed Bitcoin mining companies headquartered in the country.

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