#Singapore #crypto mining #Canaan Inc. #Series A-1

Canaan Inc. Secures $200 Million Financing

Canaan Inc., a prominent name in the crypto mining sector, has recently made headlines by announcing a strategic agreement that enables them to access substantial funding through a Series A-1 Preferred Shares financing. This move comes at a pivotal moment for the company as it looks to enhance its operational capacity and solidify its market position.

On March 10, 2025, Canaan disclosed that it successfully entered into a Securities Purchase Agreement with an institutional investor, which will provide the company with gross proceeds totaling up to $200 million. Remarkably, the first tranche of this financing has already been closed, allowing the company to receive an initial $100 million. A second tranche is expected to follow, contingent upon specific terms and conditions, potentially bringing in another $100 million shortly.

This financial boost is earmarked for essential activities aimed at facilitating the company's growth trajectory. According to Canaan’s leadership, the funds will support various initiatives, including research and development, scaling of production capabilities, and investment in sophisticated digital mining sites along with the acquisition of critical equipment aimed at enhancing operational efficiency in North America.

Nangeng Zhang, Canaan's Chairman and CEO, expressed gratitude toward their investors, highlighting that this backing reflects confidence in Canaan's strategic vision and the promising future of Bitcoin. In alignment with this optimism, Canaan’s recent operational updates revealed that revenue expectations have surpassed previous guidance, showcasing improved control over their expenses and a narrowed gross loss despite market fluctuations in Bitcoin prices.

Zhang noted, “Despite recent price fluctuations of Bitcoin, we are resolute in our optimistic outlook. Our aim is to achieve a self-mining capacity of 10 EH/s in North America by mid-2025.” This ambitious target, he argues, is propelled by the steadfast demand for their crypto mining machines and the robust foundation they’ve established in research and development and supply chain management.

Moreover, there is a critical emphasis on the value of their stock in light of the perceived undervaluation in the market. Canaan has taken a disciplined approach to their market fundraising endeavors, indicating they have been careful with their pricing strategy based on current market figures. With the first tranche of the Series A-1 financing, Canaan believes this strategic maneuver complements their ongoing at-the-market program effectively.

The Securities Purchase Agreement itself outlines standard terms, representations, and warranties typically seen in such financial agreements. It's vital to note that the full details surrounding this agreement are laid out in their comprehensive report filed on Form 6-K, which discloses the specifics of this financing arrangement.

As part of their commitment to transparency, Canaan reminds investors to consult their recent public filings to garner detailed insights into the company’s financial state amidst these significant developments. This press release serves purely informational purposes and does not constitute an offer to sell or a solicitation regarding investments; any such offers will be outlined through relevant documents.

About Canaan Inc.

Founded in 2013, Canaan Inc. has carved out its niche in the technology realm specializing in the design of ASIC high-performance computing chips, alongside producing computing equipment and offering software services. The company is renowned for its pioneering work in the ASIC field, having launched the world's first Bitcoin mining machines built on ASIC technology under the brand Avalon. Canaan went public through an IPO in 2019 on the Nasdaq Global Market, and since then, it has continued to navigate the evolving landscape of the cryptocurrency sector with agility and innovation.

With this significant capital infusion, Canaan Inc. is poised not only to expand its operational footprint but also to enhance its technological capabilities, thereby solidifying its position as a leader in the competitive crypto mining industry.