Canaan Mining Update: January Sees 42% Surge in Bitcoin Production and Hashrate Reaches 6.43 EH/s

SINGAPORE, Feb. 19, 2025 /PRNewswire/ — Canaan Inc. (NASDAQ: CAN) (“Canaan” or the “Company”), a pioneer in crypto mining, has today provided its unaudited bitcoin mining report for the month ending January 31, 2025.

Management Commentary

“In January, we achieved significant advancements across all business segments, enhancing our customer network, launching two Avalon Home consumer products, and boosting our self-mining capacity, resulting in an uptick in our bitcoin holdings,” remarked Nangeng Zhang, chairman and chief executive officer of Canaan. “At the start of the quarter, we disclosed that we finalized a purchase agreement with a pivotal U.S. client for Avalon A15XP miners. We also broadened our joint mining agreement with Luna Square, increasing from 30MW to 36MW. So far, we have energized 1,704 A14 series Avalon miners, with more miners anticipated to come online in Texas during the first quarter. Comparing sequentially, we increased our bitcoin production, mining 88 bitcoins in January against 62 in December. Additionally, our month-end deployed global hashrate rose by 18.2%, from 5.44 EH/s to 6.43 EH/s, while our month-end average revenue split improved from 53.7% to 57.3%, all while we maintain a competitive all-in power cost of 4 cents/kWh. We remain on course to achieve 10 EH/s in North America and 15 EH/s globally by mid-2025.

“At CES in Las Vegas, we introduced two innovative Avalon Home products: the 37.5 TH/s Avalon Mini 3 and the 6 TH/s Nano 3S. The Avalon Mini 3 is a smart-home, app-managed, 800-watt space heater capable of mining bitcoin, featuring a modern design and silent operation. The 140-watt Avalon Nano 3S, an enhanced version of the original Nano 3, boasts a compact, portable structure and nearly a 50% increase in computing power compared to its predecessor. Both products have garnered positive feedback since their launch and are available for pre-order on our website.”

January 2025 Bitcoin Mining Report (unaudited)

Notes:

1. Defined as the total number of bitcoins owned by the Company on its Balance Sheet including any cryptocurrency receivables, and excluding bitcoins that the Company has received as customer deposits.
2. Defined as the weighted average percentage that Canaan would share from the total revenues generated according to the applicable joint mining arrangements if 100% of the mining machines consisting of Installed Computing Power (as defined below) were energized.
3. Defined as the weighted average cost of power if 100% of the mining machines consisting of Installed Computing Power were energized.

Notes: 

4. Defined as the amount of computing power that could theoretically be generated if all mining machines that have been energized are currently in operation including mining machines that may be temporarily offline. 
5. Defined as the sum of Energized Computing Power and computing power that has been installed but not yet energized, if any.
6. Defined as the amount of computing power that has been delivered to the country where each mining project is located but not yet installed.
7. Defined as the sum of Installed Computing Power and Expected Computing Power.
8. The Company expects to bring offline approximately 0.42 EH/s of its mining computing power in Ethiopia as certain project collaborations expire in early February 2025.

Summary of Recent Operational Updates:

• Expansion of Self-Mining Operations:
  • Finalized an amendment to the joint mining agreement with Luna Squares Texas LLC. The Company has secured an additional 6MW of mining capacity at Pecos, Texas, on top of the existing 30 MW facility in Willow Wells, Texas.
  • Concluded January with approximately 0.27 EH/s of mining machines online, specifically 1,704 A14 series Avalon miners, energized at the Pecos site. The Company anticipates further deployments in Texas during the first quarter.
  • Executed the previously announced upgrading of mining devices at Stronghold’s Panther Creek facility in January, installing six thousand Avalon A14 series miners to replace older models, resulting in a 26% increase in site computing power, rising from 0.74 EH/s to 0.93 EH/s, each rig having a weighted average hashrate of 154 EH/s. The company expects this upgrade to be reflected in its mining outcomes in February 2025.
• Product Innovation:
  • Unveiled the Avalon Mini 3 and Nano 3S Bitcoin mining heaters for domestic use at CES 2025, combining efficient Bitcoin mining with home heating solutions to make cryptocurrency mining more accessible for individuals.

About Canaan Inc.

Founded in 2013, Canaan Inc. (NASDAQ: CAN) is a technology company specializing in ASIC high-performance computing chip design, research and development, production of computing equipment, and software services. Canaan has substantial experience in chip design and efficient production in the ASIC domain. In 2013, the founding team delivered the world’s first batch of mining machines incorporating ASIC technology in bitcoin‘s history under the brand name Avalon. In 2019, Canaan went public on the Nasdaq Global Market. For more information about Canaan, please visit https://www.canaan.io/.

Safe Harbor Statement

This press release includes forward−looking statements made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward−looking statements are identifiable by terms like “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” and similar expressions. They encompass the business outlook and quotations from management in this announcement, alongside Canaan Inc.’s strategic and operational plans. Canaan Inc. may also present written or oral forward−looking statements in its reports to the U.S. Securities and Exchange Commission (“SEC”) on Forms 20−F and 6−K, in its annual report to shareholders, in press releases, and verbal statements made by its officers, directors, or employees to third parties. Statements that are not historical in nature, including comments about Canaan Inc.’s beliefs and anticipations, such as expectations related to mining hash rate deployment, are considered forward−looking statements. These forward−looking statements carry inherent risks and uncertainties, with various factors potentially causing actual outcomes to differ materially from any forward−looking statement, such as the Company’s objectives and strategies; the Company’s future business initiatives, the adequacy of the company’s execution against its goals, financial condition and operational results; anticipated growth in the bitcoin sector and its pricing; the Company’s projections regarding demand and market reception for its offerings, especially its bitcoin mining machinery; as well as expectations around preserving and enhancing relationships with production partners and customers; and the Company’s investment plans, fluctuations in quarterly operational results; competition within its industry; and relevant government policies and regulations related to the Company and cryptocurrency. Further information about these and additional risks is detailed in the Company’s filings with the SEC. All data provided in this press release and attachments is current as of the release date; Canaan Inc. has no obligation to update any forward−looking statement except as required by applicable law.

Investor Relations Contact

Canaan Inc.
Xi Zhang
Email: [email protected]

ICR, LLC.
Robin Yang
Tel: +1 (347) 396-3281
Email: [email protected]

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SOURCE Canaan Inc.