Bitcoin Mining Rig Manufacturer Canaan Raises $50 Million Through Preferred Shares Sale

In a caller disclosure to the U.S. Securities and Exchange Commission (SEC), Canaan, a publically traded shaper of bitcoin mining rigs, announced it has secured $50 cardinal done the merchantability of preferred shares. This follows a palmy acquisition of $25 cardinal successful a akin preferred stock merchantability conducted by Canaan past year.

Canaan Sells Preferred Shares to an Unnamed Institutional Buyer

Canaan (Nasdaq: CAN), known for producing Avalon-branded application-specific integrated circuit (ASIC) bitcoin mining rigs, successfully garnered $50 cardinal by selling preferred shares. This fiscal boost was highlighted successful a January 2024 SEC Form 6-K filing, revealing that the shares were purchased by an undisclosed “institutional buyer.”

This announcement comes connected the heels of Canaan’s erstwhile task successful the erstwhile year, wherever connected Nov. 27, 2023, the institution sold shares amounting to $25 million. The ASIC shaper has specified that these funds volition beryllium allocated towards probe and improvement arsenic good arsenic covering the company’s operational expenses. Established for a important period, Canaan is recognized for launching the archetypal publicly-available ASIC miner successful 2013.

Canaan marked its introduction into the nationalist marketplace with an archetypal nationalist offering (IPO) connected the Nasdaq Global Market successful 2019. The steadfast debuted connected Nasdaq connected Nov. 21, 2019, with the ticker awesome “CAN,” amassing $90 million from the IPO. Nonetheless, since its introduction, CAN’s shares person seen a diminution of 88% from their archetypal value, with a 41% alteration observed year-to-date.

In the past 5 trading days, Canaan’s banal has experienced a downturn, dropping somewhat implicit 17% successful worth against the U.S. dollar. Amidst this, Canaan has been proactive successful rolling retired caller products. Celebrating its tenth day towards the adjacent of 2023, the institution unveiled 2 caller mining devices. One of these devices boasts an ratio standing of nether 20 joules per terahash, connected par with the high-performance mining rigs produced by rivals Microbt and Bitmain. Recently, Cipher Mining has inked a deal to get 16,700 bitcoin miners from the company.

What bash you deliberation astir Canaan raising $50 cardinal from a preferred stock sale? Share your thoughts and opinions astir this taxable successful the comments conception below.