Crypto Mining Rig Maker Canaan Raises $50 Million to Enhance R&D and Expand Production Scale
Crypto mining rig manufacturer Canaan has successfully raised over $50 million through preferred shares financing. The funds will be used to enhance research and development capabilities and expand production scale. The company made the announcement in a recent filing, revealing that it issued and sold up to 125,000 series A convertible preferred shares to an institutional investor. Although the investor’s identity remains undisclosed, Canaan stated that the net proceeds from the sale will be allocated towards research and development, expansion of production scale, and other general corporate purposes.
Stock Performance and Financial Results
Canaan’s stock closed at $1.45 on Thursday, experiencing a 6.45% decrease. Since the start of the month, the stock has seen a decline of 32.87%. In terms of financial performance, the mining rig maker reported a net loss of $80.1 million in the third quarter of last year, compared to a net income of $6.3 million in the same period of 2022.
Follow-On Purchase Orders
In recent news, Canaan secured follow-on purchase orders for more than 17,000 bitcoin mining machines from Cipher Mining Inc. and Stronghold Digital Mining Inc., both of which are also listed on Nasdaq.
Hot Take: Canaan Raises $50 Million to Boost R&D and Expand Production Scale
Canaan, a leading crypto mining rig manufacturer, has successfully raised over $50 million through preferred shares financing. This funding will play a crucial role in enhancing Canaan’s research and development capabilities while also expanding its production scale. The undisclosed institutional investor has contributed significantly to this milestone achievement for Canaan. With these additional funds, Canaan aims to focus on advancing its technological innovations and meeting the growing demand for mining equipment in the crypto industry. This strategic move will likely position Canaan as a key player in the evolving landscape of cryptocurrency mining.
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