Bitcoin Mining Rig Manufacturer Canaan Raises $50 Million Through Preferred Shares Sale

In a current disclosure to the U.S. Securities and Exchange Commission (SEC), Canaan, a publicly traded producer of bitcoin mining rigs, introduced it has secured $50 million by the sale of most well-liked shares. This follows a profitable acquisition of $25 million in an analogous most well-liked share sale carried out by Canaan final yr.

Canaan Sells Preferred Shares to an Unnamed Institutional Buyer

Canaan (Nasdaq: CAN), identified for producing Avalon-branded application-specific built-in circuit (ASIC) bitcoin mining rigs, efficiently garnered $50 million by promoting most well-liked shares. This monetary increase was highlighted in a January 2024 SEC Form 6-K filing, revealing that the shares had been bought by an undisclosed “institutional buyer.”

This announcement comes on the heels of Canaan’s earlier enterprise within the earlier yr, the place on Nov. 27, 2023, the corporate sold shares amounting to $25 million. The ASIC producer has specified that these funds will likely be allotted in the direction of analysis and growth in addition to overlaying the corporate’s operational bills. Established for a big interval, Canaan is recognized for launching the primary publicly-available ASIC miner in 2013.

Canaan marked its entry into the general public market with an preliminary public providing (IPO) on the Nasdaq Global Market in 2019. The agency debuted on Nasdaq on Nov. 21, 2019, with the ticker image “CAN,” amassing $90 million from the IPO. Nonetheless, since its introduction, CAN’s shares have seen a decline of 88% from their authentic worth, with a 41% lower noticed year-to-date.

In the final 5 buying and selling days, Canaan’s inventory has skilled a downturn, dropping barely over 17% in worth towards the U.S. greenback. Amidst this, Canaan has been proactive in rolling out new merchandise. Celebrating its tenth anniversary in the direction of the shut of 2023, the corporate unveiled two new mining gadgets. One of those gadgets boasts an effectivity score of beneath 20 joules per terahash, on par with the high-performance mining rigs produced by rivals Microbt and Bitmain. Recently, Cipher Mining has inked a deal to amass 16,700 bitcoin miners from the corporate.

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