Canaan Inc. – Innovator in ASIC Bitcoin Miners and Supercomputing Solutions

In today's world of cryptocurrencies and blockchain technologies, Canaan Inc. holds a unique position due to its advanced developments in high-performance computing and mining equipment. Founded in 2013, Canaan became a pioneer in creating application-specific integrated circuits (ASICs) for Bitcoin mining, significantly influencing the industry's evolution.

Contents

• Canaan Inc.: The Rise of a Technological Giant
• Product Line and Innovations
• Technological Achievements and Developments
• Partnerships and Strategic Alliances
• Financial Performance and Investments
• Conclusion

1. Canaan Inc.: The Rise of a Technological Giant

Canaan Inc. was established in 2013 by Nangeng Zhang, also known as N.G. Zhang, with the goal of developing specialized solutions for Bitcoin mining. As a graduate student, Zhang recognized the potential in creating ASICs to enhance cryptocurrency mining efficiency. Initially focusing on FPGA-based products, the company soon shifted to ASIC chip development, significantly boosting mining speed and efficiency.

In 2013, under Zhang's leadership, Canaan's team released the first batch of ASIC-based Bitcoin mining machines under the Avalon brand, marking a significant milestone in Bitcoin's history. In 2016, the company attempted a $466 million reverse takeover through the public company Shandong Luyitong, but the deal did not materialize. In November 2019, Canaan successfully conducted an initial public offering (IPO) on NASDAQ, raising $90 million and obtaining the ticker "CAN," underscoring its leadership in the industry and commitment to innovation in high-performance computing and blockchain technologies.

2. Product Line and Innovations

Canaan Inc. continues to strengthen its position in the Bitcoin mining hardware market, offering a diverse range of products under the Avalon brand that combine high performance, energy efficiency, and innovative solutions.

Professional Mining Solutions:

In January 2025, at the CES exhibition, the company introduced devices aimed at home users:

Innovations for Home Mining:

These products demonstrate Canaan's commitment to making mining accessible to a broader audience and integrating it into daily life by offering solutions that combine technological innovation and practical utility.

3. Technological Achievements and Developments

Canaan Inc. has established itself as a pioneer in high-performance computing and the development of application-specific integrated circuits (ASICs). In 2018, the company introduced the world's first 7nm ASIC chip for Bitcoin mining, significantly enhancing the energy efficiency of cryptocurrency mining equipment.

In March 2025, at the Mining Disrupt conference, Canaan unveiled the Avalon Q, a professional-grade Bitcoin miner designed for home use. The Avalon Q delivers up to 90 TH/s of hash power with adjustable power consumption ranging from 800W to 1600W. Notably, it operates at a noise level of just 45dB, comparable to a quiet library, making it suitable for residential environments. The device is compatible with standard household electrical systems (110V-240V) and offers user-friendly operation through the Avalon Family APP. It's available for preorder at $1,599 until the end of April 2025. 

Beyond advancements in cryptocurrency mining, Canaan is actively expanding into the field of artificial intelligence (AI). In 2021, the company released the Kendryte K510, a second-generation AI chip based on a 64-bit RISC-V architecture. The K510 features a tri-core processor: two 64-bit RISC-V cores and one RISC-V core with DSP extensions, all running at up to 800 MHz. It boasts a computing power of up to 3 TOPS, making it suitable for various AI applications, including image and voice processing. The chip integrates the latest generation of image signal processors (ISP) and supports features like 2D/3D noise reduction, wide dynamic range, and lens shading correction. 

These technological achievements underscore Canaan's commitment to innovation and its strategic expansion beyond the cryptocurrency industry into broader applications of high-performance computing and artificial intelligence.

4. Partnerships and Strategic Alliances

Canaan is actively expanding its presence in the high-performance computing and cryptocurrency mining market through strategic partnerships and alliances.

Key collaborations include:​

• Collaboration with Luna Squares Texas: In November 2024, Canaan entered a strategic agreement with Luna Squares Texas to jointly mine Bitcoin at a facility in Willow Wells, Texas. The project plans to install approximately 3,480 Avalon A14 and 5,664 Avalon A15 mining units, aiming for a computing power of about 1.62 EH/s. The facility is expected to commence operations in Q1 2025.
• Partnership with Mawson Hosting: In March 2025, Canaan signed a three-year agreement with Mawson Hosting LLC for equipment hosting at their facility in Midland, Pennsylvania. Additionally, a 24-month hosting agreement was established with another partner in Edna, Texas. These partnerships are projected to add approximately 4.7 EH/s to Canaan's North American mining capacity upon full deployment. 
• Agreement with Northern Data AG: In February 2020, Canaan announced a strategic partnership with Northern Data AG to collaborate on the development of AI and blockchain technologies, as well as optimizing data center operations. This alliance aims to leverage both companies' strengths to achieve significant advancements in these fields.

These strategic alliances underscore Canaan's commitment to global expansion and the integration of advanced technologies across various sectors, reinforcing its position as a leader in high-performance computing and cryptocurrency mining.

5. Financial Performance and Investments

In March 2025, Canaan Inc. entered into a financing agreement through Series A-1 preferred shares for up to $200 million. The first tranche of $100 million was received on March 10, and the remaining amount is expected to be disbursed soon, subject to certain conditions. The raised funds are planned to be allocated toward research and development, manufacturing expansion, and investments in mining infrastructure in North America.

In the fourth quarter of 2024, the company reported revenue of $88.8 million, marking an 80.9% increase compared to the same period in the previous year. Mining-related income reached $15.3 million, representing a 312.5% year-over-year growth. For the full year 2024, total revenue amounted to $269.3 million, up 27.4% from 2023.

These financial results and investments reflect Canaan’s commitment to strengthening its market position and expanding its footprint in the high-performance computing and cryptocurrency mining industries.

6. Conclusion

Canaan Inc. demonstrates steady growth and innovative development in the high-performance computing and cryptocurrency mining industry. Thanks to advanced technological achievements, such as the implementation of 7nm ASIC chips and the development of home mining devices, Canaan has strengthened its market position. Strategic partnerships with companies like Luna Squares Texas and Mawson Hosting contribute to the company’s expansion in North America and help achieve its goals of increasing computational capacity. The company’s financial results—including significant revenue growth and successful fundraising—reflect investor confidence and the effectiveness of its chosen strategy. Overall, Canaan continues to make a substantial contribution to the advancement of technology and the expansion of opportunities in both cryptocurrency mining and artificial intelligence.