Cipher

Bitcoin

Read

Crypto mining rig manufacturer Canaan has obtained over $50m from preferred share financing to boost research and development and expand its production scale. 
In a recent <a href="https://investor.canaan-creative.com/node/7851/html" target="_blank" rel="noopener">filing</a>, The Nasdaq-listed firm announced that it generated the capital by issuing and selling up to 125,000 series A convertible preferred shares to an institutional investor whose identity was not revealed. 
Canaan plans to allocate the net proceeds towards enhancing its research and development activities, scaling up production, and covering general corporate expenses. 
The company, known for its ticker symbol “CAN,” made its debut on the Nasdaq Global Market in 2019 <a href="https://crypto.news/bitcoin-mining-canaan-creative-400m-u-s-ipo/">through an initial public offering (IPO)</a>. The IPO, held on Nov. 21, 2019, helped Canaan raise $90 million. However, since its market entry, the value of CAN’s shares has plummeted by 88%, with a 41% decrease recorded in the current year. 
 You might also like: <a href="https://crypto.news/bitcoin-mining-stocks-rise-as-sp-500-and-dow-jones-hit-all-time-high/"> Bitcoin mining stocks rise as S&amp;P 500 and Dow Jones hit all-time high </a> 
Canaan’s financial performance has been challenging, as evidenced by its third-quarter results from the previous year. The firm reported a substantial net loss of<a href="https://crypto.news/canaans-q3-bitcoin-mining-revenue-declines-by-nearly-80/"> $80.1 million</a>, a stark contrast to the net income of $6.3 million recorded in the same quarter of 2022. 
On a related note, Canaan’s stock value experienced a <a href="https://finance.yahoo.com/quote/CAN/" target="_blank" rel="noopener">6.45% decline</a>, closing at $1.45 on Jan. 25. Since the start of the month, the stock has dropped by 32.87%. 
Despite these setbacks, Canaan remains active in product development. Celebrating its tenth anniversary towards the end of 2023, the company <a href="https://twitter.com/LaurenQianLin/status/1701438218200301804" target="_blank" rel="noopener">launched </a>two new mining devices. One of these devices is notable for its high efficiency, with an energy consumption rating of fewer than 20 joules per terahash, rivaling the performance of devices from competitors like <a href="https://crypto.news/tag/microbt/">Microbt </a>and <a href="https://crypto.news/tag/bitmain/">Bitmain</a>. 
Earlier this month, Canaan <a href="https://investor.canaan-creative.com/news-releases/news-release-details/canaan-secures-follow-purchase-orders-cipher-and-stronghold" target="_blank" rel="noopener">revealed </a>it had obtained subsequent orders for more than 17,000 bitcoin mining machines from <a href="https://crypto.news/tag/cipher-mining/">Cipher Mining</a> Inc. and Stronghold Digital Mining Inc., with both buyers also being companies listed on the Nasdaq. 
 Read more: <a href="https://crypto.news/bitcoin-mining-reaches-new-all-time-high-of-54-renewable-use/"> Bitcoin mining reaches new all-time high of 54% renewable use </a>

Canaan secures $50m in series A preferred shares sale

crypto.news

Other articles published on Jan 26, 2024

Estonian government overrules court block, allows extradition of HashFlare duo

Ripple CTO Explains How AMM Feature Will Enable XRP Holders To Earn Passive Income

MASK Price Prediction: MASK Stayed In Range; Will It Hold $3?

Politics vs. economy – What will prevail in the U.S. this year?

Ripple v. SEC case update as of January 26, 2024

Bitcoin Price Surges Above $41,000, Altcoins Gain as ETF Approval Fuels Market

Join our free newsletter for daily crypto updates!