Canaan, a Bitcoin mining company, has entered into an agreement with Texas-based Luna Squares Texas to boost its North American capacities.
Agreement between Canaan and Luna Squares Texas
The November agreement between Canaan and Luna Squares Texas involves joint Bitcoin mining using Avalon mining machines. Revenue will be shared based on the machine model: 50% for each company on A14 machines and 70% for Canaan on A15 machines until capital costs are recovered.
Plans and Benefits of the Partnership
Canaan's Chairman Nangeng Zhang highlighted that the partnership with Luna Squares Texas will contribute to industry stability and be mutually beneficial. The North American expansion is a key part of Canaan's strategy.
Technical Details and Project Outlook
The Willow Wells site will be staffed by LS Texas and is expected to be operational by 2025, featuring 3,480 Avalon A14 and 5,664 Avalon A15 machines. This will provide about 1.62 EH/s of computing power. Following the collaboration announcement, Canaan's shares rose by 3.77% in pre-market trading, according to Nasdaq data.
The new initiative by Canaan and Luna Squares Texas to expand Bitcoin mining in Texas serves as an example of strategic expansion in North America and partnership to maximize profitability and industry stability.
