Canaan Inc. Signs Agreement with AGM Group Holdings Inc.

Rhea-AI Summary

Canaan Inc. (NASDAQ: CAN) has signed a purchase agreement with AGM Group Holdings Inc. (AGMH) through its Singapore subsidiary Canaan Creative Global Pte. The deal includes an initial order of 2,000 Avalon A15 Hydro Bitcoin mining machines.

The agreement also provides AGMH with an option to acquire approximately 30,000 additional BTC mining units, potentially reaching a combined power capacity of up to 300 megawatts. The Avalon Miner A15 Hydro is designed to enhance performance and lifespan while reducing energy consumption and noise pollution, supporting Canaan's ESG initiatives.

Positive

• Secured initial order for 2,000 A15 Hydro Bitcoin mining machines
• Potential follow-on order of 30,000 additional mining units
• Agreement expands market presence through new customer acquisition

Negative

• None.

Insights

Financial Analyst

This deal marks a significant commercial milestone for Canaan in the mining hardware sector. The initial order of 2,000 A15 Hydro miners represents immediate revenue, but the real value lies in the option for 30,000 additional units. With current A15 Hydro prices around $6,000-8,000 per unit, the potential total contract value could exceed $240 million if fully exercised. The 300MW power capacity provision suggests AGMH's serious commitment to large-scale mining operations. This agreement strengthens Canaan's market position in Singapore and demonstrates continued demand for their high-efficiency mining equipment despite current market conditions. The liquid cooling technology in A15 Hydro units also provides a competitive edge in the increasingly ESG-conscious mining sector.

Tech Expert

The A15 Hydro represents Canaan's strategic pivot toward more efficient mining solutions. Its hydro-cooling technology significantly improves hash rate stability and extends equipment lifespan compared to traditional air-cooled units. The 370TH/s performance spec positions it competitively in the current market. The 300MW power capacity provision in the agreement suggests infrastructure planning for a substantial mining operation, potentially making this a transformative deal for both parties. The focus on reduced energy consumption and noise pollution through liquid cooling technology demonstrates Canaan's adaptation to evolving market demands for more sustainable mining solutions.

Provides 2000 A15 Hydro Bitcoin mining machines in initial order
Continues global expansion with addition of new customer

SINGAPORE, Dec. 12, 2024 /PRNewswire/ -- Canaan Inc. (NASDAQ: CAN) ("Canaan" or the "Company"), a leading high-performance computing solutions provider, today announced that Canaan Creative Global Pte. Ltd. ("CCG"), a wholly owned Singapore subsidiary of the Company, has entered into a purchase agreement with AGM Group Holdings Inc. ("AGMH"), an integrated technology company specializing in fintech software services and production of high-performance hardware and computing equipment, for its Avalon A15 HydU 370T ("A15 Hydro") mining machines.

As part of the agreement, Canaan will initially provide 2,000 Bitcoin mining machines to AGMH. The Company has also agreed to provide its customer with an option to acquire approximately 30,000 additional BTC mining units, potentially providing AGMH with a combined power capacity not exceeding 300 megawatts.

The Avalon Miner A15 Hydro enhances the miner's performance and lifespan while reducing energy consumption and noise pollution, aligning with Canaan's ESG (Environmental, Social, and Governance) strategy.

About Canaan Inc.
Established in 2013, Canaan Inc. (NASDAQ: CAN), is a technology company focusing on ASIC high-performance computing chip design, chip research and development, computing equipment production, and software services. Canaan has extensive experience in chip design and streamlined production in the ASIC field. In 2013, Canaan's founding team shipped to its customers the world's first batch of mining machines incorporating ASIC technology in bitcoin's history under the brand name Avalon. In 2019, Canaan completed its initial public offering on the Nasdaq Global Market. To learn more about Canaan, please visit https://www.canaan.io/.

Safe Harbor Statement
This announcement contains forward−looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward−looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Canaan Inc.'s strategic and operational plans, contain forward−looking statements. Canaan Inc. may also make written or oral forward−looking statements in its periodic 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 other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Canaan Inc.'s beliefs and expectations, are forward−looking statements. Forward−looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward−looking statement, including but not limited to the following: the Company's goals and strategies; the Company's future business development, financial condition and results of operations; the expected growth of the bitcoin industry and the price of bitcoin; the Company's expectations regarding demand for and market acceptance of its products, especially its bitcoin mining machines; the Company's expectations regarding maintaining and strengthening its relationships with production partners and customers; the Company's investment plans and strategies, fluctuations in the Company's quarterly operating results; competition in its industry; and relevant government policies and regulations relating to the Company and cryptocurrency. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Canaan Inc. does not undertake any obligation to update any forward−looking statement, except as required under applicable law.

Investor Relations Contacts
Canaan Inc.
Xi Zhang
Email: IR@canaan-creative.com

ICR, LLC.
Robin Yang
Tel: +1 (347) 396-3281
Email: canaan.ir@icrinc.com

View original content:https://www.prnewswire.com/news-releases/canaan-inc-signs-agreement-with-agm-group-holdings-inc-302330362.html

SOURCE Canaan Inc.

FAQ

What is the size of Canaan's (CAN) initial mining machine order from AGM Group Holdings?

The initial order consists of 2,000 Avalon A15 Hydro Bitcoin mining machines.

How many additional mining units can AGM Group Holdings purchase from Canaan (CAN)?

AGM Group Holdings has the option to acquire approximately 30,000 additional BTC mining units.

What is the potential total power capacity of the Canaan (CAN) mining machines in the AGM Group Holdings deal?

The combined power capacity of the mining machines could reach up to 300 megawatts.

What are the key features of Canaan's (CAN) Avalon A15 Hydro mining machines?

The Avalon A15 Hydro mining machines offer enhanced performance and lifespan while reducing energy consumption and noise pollution, supporting ESG initiatives.