Canaan Inc., a leading cryptocurrency mining company, has raised $72 million in a strategic investment from three institutional firms: BH Digital (a division of Brevan Howard), Galaxy Digital, and Weiss Asset Management.
The funding was executed through a direct purchase of American depository shares, each representing 15 Class A common stock, without any warrants, options, or derivative instruments, reflecting a straightforward equity deal and strong confidence in the company's fundamentals.
Nangeng Zhang, Chairman and CEO of Canaan, expressed gratitude, stating, "We are deeply grateful to Brevan Howard, Galaxy Digital, and Weiss Asset Management for their participation." He emphasized that the investment will support ongoing innovation and growth across all business areas, including strengthening the Bitcoin ecosystem and expanding into high-return computing projects like artificial intelligence (AI).
Canaan holds a treasury of 1,582 BTC and is seeking additional liquidity to reduce reliance on future stock-based fundraising, which could dilute shareholder value. The company is shifting its capital strategy to align with long-term investor goals, moving beyond Bitcoin mining rig production to develop new data centers and pursue AI initiatives.
In October, Canaan reported a large order for 50,000 Apollo mining computers destined for the U.S. market, and it currently operates eight data centers with a small-scale computational model. Financially, the company has faced challenges, with a profit margin of -77%, return on assets (ROA) of -18.9%, return on equity (ROE) of -75.8%, and earnings per share (EPS) of -0.88 USD, indicating sustained operating losses.
The stock price (NASDAQ: CAN) is approximately $1.20 USD, with high volatility, and the company recently regained compliance with Nasdaq listing requirements after maintaining a minimal bid price above $1. Canaan's market capitalization stands at around $532 million, with a daily trading volume exceeding 35 million shares.
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