Canaan successfully raises $50m through series A preferred shares offering
Leading manufacturer of crypto mining rigs, Canaan, has secured over $50 million through preferred share financing to enhance its research and development initiatives and expand its production capabilities. The company recently disclosed that it raised the capital by issuing and selling 125,000 series A convertible preferred shares to an undisclosed institutional investor.
Canaan intends to utilize the net proceeds to bolster its research and development efforts, scale up production, and cover general corporate expenses. The firm, identified by its ticker symbol “CAN,” made its debut on the Nasdaq Global Market in 2019 via an initial public offering (IPO) on November 21. The IPO enabled Canaan to raise $90 million. However, since entering the market, the value of CAN’s shares has plummeted by 88%, including a 41% decrease in the current year.
Canaan has faced financial challenges, as evident from its third-quarter results of the previous year, which reported a significant net loss of $80.1 million, a sharp contrast to the net income of $6.3 million recorded in the same quarter of 2022.
In a related development, Canaan’s stock value experienced a decline of 6.45%, closing at $1.45 on January 25. Since the beginning of the month, the stock has dropped by 32.87%.
Despite these setbacks, Canaan remains active in product development. Celebrating its tenth anniversary towards the end of 2023, the company recently launched two new mining devices. Notably, one of these devices stands out for its high efficiency, with an energy consumption rating of fewer than 20 joules per terahash, rivaling the performance of competitors like Microbt and Bitmain.
Earlier this month, Canaan announced that it had received subsequent orders for over 17,000 bitcoin mining machines from Cipher Mining Inc. and Stronghold Digital Mining Inc., both of which are also listed on the Nasdaq.
Read more: Bitcoin mining reaches new all-time high of 54% renewable use. Follow us on Google News.
