Luisa Crawford
Nov 20, 2024 12:10
Canaan Inc. strengthens its North American presence with expanded Bitcoin mining operations in Texas and Pennsylvania, aiming for a 10 EH/s capacity by mid-2025.
Strategic Expansion in Texas
Canaan Inc. (NASDAQ: CAN), a leading provider of high-performance computing solutions, has announced a strategic joint mining agreement with Luna Squares Texas LLC (LS Texas), a Bitcoin mining firm based in West Texas. This collaboration marks a significant step in Canaan’s plan to expand its self-mining operations and achieve a 10 exahash per second (EH/s) capacity in North America by mid-2025, according to [PR Newswire](https://www.prnewswire.com/news-releases/canaan-inc-expands-its-self-mining-footprint-in-texas-and-pennsylvania-302311215.html).
Revenue Sharing and Equipment Deployment
Under the terms of the agreement, Canaan and LS Texas will share Bitcoin revenue after deducting electricity, maintenance, and operating costs. Specifically, revenue from Canaan’s Avalon A14 Series will be split equally, while Canaan will initially receive 70% of the revenue from the Avalon A15 Series until its capital costs are recovered, after which the revenue will again be split equally. Canaan plans to install approximately 3,480 Avalon A14 series mining machines and 5,664 Avalon A15 series machines at the LS Texas site in Willow Wells, Texas, projected to be operational by Q1 2025.
Partnership Benefits and Technological Advancements
Jeff Xu, COO of LS Texas, expressed enthusiasm for the partnership, highlighting the competitive advantage due to strategic locations and favorable power costs. LS Texas has committed to a 96% uptime, reflecting confidence in their operational team and Canaan’s mining technology. The site is expected to contribute approximately 1.62 EH/s of computing power once fully operational.
Expansion in Pennsylvania
In addition to the Texas expansion, Canaan’s subsidiary, Cantaloupe Digital LLC, has updated its hosting agreement with Stronghold Digital Mining Hosting, LLC. This involves deploying 4,000 Avalon A14 series mining machines at Stronghold’s Panther Creek facility in Pennsylvania. The upgrade aims to enhance operational efficiency and is expected to be completed by the end of 2024, adding a total of 0.9 EH/s computing power.
Company Background and Future Prospects
Founded in 2013, Canaan Inc. has established itself as a pioneer in ASIC high-performance computing chip design and production. It completed its initial public offering on the Nasdaq in 2019. The company’s recent $50 million financing round indicates its commitment to expanding digital mining infrastructure in North America. Canaan’s efforts to strengthen its mining presence highlight its strategic focus on fostering industry stability through collaborations with North American operators.Image source: Shutterstock