Canaan Inc. Signs Agreement with HIVE for Avalon A1566 Miners

Rhea-AI Summary

Canaan Inc. has signed a purchase agreement with HIVE Digital Technologies for 6,500 Avalon A1566 miners through its Singapore subsidiary. The miners, with an average computing power of 185 Terahash per second, will be delivered in phases: 500 units immediately and the remaining 6,000 in four monthly shipments of 1,500 units from December 2024 through March 2025. The A1566 is Canaan's second-generation 1xJ/T series product, designed for improved power efficiency and reliability in mining operations.

Positive

• Secured significant order for 6,500 mining units from established customer
• Phased delivery schedule ensures steady revenue stream through March 2025
• Partnership with HIVE, recognized for high Bitcoin production efficiency

Negative

• None.

Insights

Technology & Mining Equipment Analyst

This order for 6,500 Avalon A1566 miners represents a significant equipment deal that strengthens Canaan's market position in North America. The phased delivery structure, with 500 units immediate delivery and 1,500 monthly shipments through March 2025, provides predictable revenue streams. The A1566's 185 TH/s computing power demonstrates competitive specifications in the current market.

HIVE's selection of Canaan hardware is particularly noteworthy given their industry-leading Bitcoin production efficiency. This deal validates Canaan's technology advancement and could lead to future orders. The improved power efficiency of the A1566 aligns with HIVE's ESG focus, potentially attracting similar environmentally conscious clients. However, the crypto mining sector's volatility and Bitcoin's price fluctuations could impact the long-term value realization of this deal.

Continues North American Expansion with Order from Long-term Customer

SINGAPORE, Nov. 11, 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 HIVE Digital Technologies Ltd ("HIVE"), for its Avalon A1566 miners.

According to the purchase agreement, CCG will provide HIVE with 6,500 Avalon A1566 miners, with an average computing power of 185 Terahash per second (TH/s). Of the 6,500 A1566 miners, 500 miners have been immediately delivered and are scheduled for installation. The remaining 6,000 machines will be delivered in four monthly shipments of 1,500 units, from December 2024 through March 2025. 

"We would like to thank HIVE for choosing Canaan's mining solutions for their operations. Securing a significant order is always rewarding, but it is even more gratifying when it comes from HIVE — a long-standing customer and a pioneer in Bitcoin mining. With a highly skilled, global team, HIVE has been able to maximize the utilization rate of its mining sites, resulting in some of the highest Bitcoin production per active hashrate in the industry," said Nangeng Zhang, chairman and CEO of Canaan. "HIVE is an important partner, especially given their commitment to transparency in business and their strong focus on ESG principles. We can all learn from them as a leading player in their field."

The Avalon Miner A1566 is the second generation of 1xJ/T series products released by Canaan. Designed to provide a more dependable mining experience, the A1566 sets a new benchmark in performance with improved power efficiency and is the result of Canaan's ongoing market research and its investment in product development.

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 press release 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, Canaan Inc.'s anticipated financing plans and its intended use of proceeds 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 in China; 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 Contact

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-hive-for-avalon-a1566-miners-302301039.html

SOURCE Canaan Inc.

FAQ

How many Avalon A1566 miners did Canaan (CAN) sell to HIVE in November 2024?

Canaan sold 6,500 Avalon A1566 miners to HIVE Digital Technologies.

What is the delivery schedule for Canaan's (CAN) miners to HIVE?

500 miners will be delivered immediately, with the remaining 6,000 units to be delivered in four monthly shipments of 1,500 units from December 2024 through March 2025.

What is the computing power of Canaan's (CAN) Avalon A1566 miners?

The Avalon A1566 miners have an average computing power of 185 Terahash per second (TH/s).