Canaan Secures Major Deal with HIVE for 6,500 Bitcoin Miners

Canaan Inc. (NASDAQ: CAN), a provider of high-performance computing solutions, has announced a significant agreement through its Singapore-based subsidiary, Canaan Creative Global Pte. Ltd. (CCG), to supply HIVE Digital Technologies Ltd. with 6,500 Avalon A1566 mining machines, specifically designed for Bitcoin mining.

• Mining Power:

  • Each Avalon A1566 machine delivers approximately 185 terahashes per second (TH/s).
  • The first batch of 500 machines is already en route to HIVE, with subsequent deliveries scheduled from next month through March 2025.

• HIVE's Commitment:

  • HIVE Digital, a Canadian company focused on environmentally-friendly cryptocurrency mining, views this deal as a major enhancement to its mining capabilities.
  • HIVE’s Executive Chairman, Frank Holmes, emphasized their disciplined capital management strategy, which allows for timely ASIC upgrades.

• Future Plans:

  • This order is part of HIVE's broader strategy, which includes the construction of a 100-megawatt mining facility in Paraguay.
  • The company aims to significantly boost its total computing power (hashrate) by next year, leveraging Canaan’s advanced mining machines.

• Canaan's Reputation:

  • Canaan’s CEO, Nangeng Zhang, expressed enthusiasm about the partnership, highlighting HIVE as a long-standing customer and a leader in Bitcoin mining.
  • Canaan has a strong history in the mining industry, being one of the pioneers of ASIC-based mining machines since 2013.

FAQs

1. What is the recent deal announced by Canaan?

   • Canaan has secured a major agreement to supply HIVE Digital Technologies with 6,500 Avalon A1566 Bitcoin mining machines.

2. What is the hashing power of the Avalon A1566 miners?

   • Each Avalon A1566 miner delivers approximately 185 terahashes per second (TH/s).

3. When will the first batch of miners be delivered to HIVE?

   • The first batch of 500 Avalon A1566 miners is already on its way to HIVE, with additional deliveries scheduled from next month through March 2025.

4. What is HIVE Digital Technologies' focus in the cryptocurrency space?

   • HIVE Digital is focused on environmentally-friendly cryptocurrency mining and aims to enhance its mining capabilities through this deal.

5. What are HIVE's future plans regarding mining facilities?

   • HIVE plans to construct a 100-megawatt mining facility in Paraguay to significantly boost its total computing power.

6. How does this deal fit into HIVE's capital management strategy?

   • HIVE's Executive Chairman, Frank Holmes, noted that the deal aligns with their disciplined capital management strategy, allowing for timely upgrades to their ASIC mining equipment.

7. What is Canaan's history in the mining industry?

   • Canaan is one of the pioneers of ASIC-based mining machines, having been established in 2013, and has a strong reputation in the industry.

8. Who is the CEO of Canaan, and what did he say about the partnership?

   • Canaan's CEO, Nangeng Zhang, expressed enthusiasm about the partnership, highlighting HIVE as a long-standing customer and a leader in Bitcoin mining.

9. What is the significance of this deal for Canaan?

   • This deal represents a significant opportunity for Canaan to expand its market presence and strengthen its relationship with a key customer in the cryptocurrency mining sector.

10. How does this deal impact the overall Bitcoin mining landscape?

    • The agreement is expected to enhance HIVE's mining capabilities, contributing to increased competition and efficiency in the Bitcoin mining industry.