Canaan, a company specializing in the production of cryptocurrency mining equipment, has successfully raised $50 million by issuing and selling convertible preferred shares. According to the information provided in the report to the SEC, in November 2023, Canaan entered into an agreement with an unspecified institutional investor, after which it received financing in two equal parts in December and January.

These additional funds are expected to be used by Canaan to finance scientific and research work, as well as to scale production and other corporate purposes.

In September 2023, Canaan introduced a new generation of bitcoin miner called A1466I, which is characterized by immersion cooling and energy efficiency of less than 20 J/TH. This product helped the company get closer to market leaders such as Bitmain and MicroBT in terms of energy consumption.

In 2021, Canaan also began to engage in its own cryptocurrency mining, launching an enterprise in Kazakhstan and opening a service center in that country. Later, the company expanded its mining operations to the United States.

However, in August 2023, Canaan temporarily shut down its production facilities in Kazakhstan due to mandatory licensing requirements. This affected equipment with a hashrate of 2 EH/s, which is about half of the total.

In mid-November 2023, Canaan received a license to carry out cryptocurrency mining activities in Central Asia.

The financial report for the third quarter showed a 79.5% decrease in mining revenue compared to the previous period, with total revenue of $3.3 million. Sales of equipment by capacity increased by 38.7% in the quarter, reaching 3.8 EH/s, but despite this, Canaan's net loss in this period amounted to $80.1 million.

As a result of the disclosure of information about the funds raised, the company's shares rose by 10%, reaching a price of $1.6. Note that in November 2019, Canaan became the first company among mining equipment manufacturers to conduct a successful IPO on Nasdaq, raising $90 million by placing 10 million depositary receipts at a price of $9.

CoinShares experts estimate that after the upcoming halving, only some public miners will remain profitable, including Bitfarms, Iris, CleanSpark, TeraWulf and Cormint.