Canaan secures $50m in series A preferred shares sale

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Crypto mining rig producer Canaan has obtained over $50m from most popular share financing to spice up analysis and growth and develop its manufacturing scale.

In a current filing, The Nasdaq-listed agency introduced that it generated the capital by issuing and promoting as much as 125,000 sequence A convertible most popular shares to an institutional investor whose id was not revealed.

Canaan plans to allocate the web proceeds in the direction of enhancing its analysis and growth actions, scaling up manufacturing, and masking common company bills.

The corporate, identified for its ticker image “CAN,” made its debut on the Nasdaq World Market in 2019 through an initial public offering (IPO). The IPO, held on Nov. 21, 2019, helped Canaan elevate $90 million. Nevertheless, since its market entry, the worth of CAN’s shares has plummeted by 88%, with a 41% lower recorded within the present 12 months.

Canaan’s monetary efficiency has been difficult, as evidenced by its third-quarter outcomes from the earlier 12 months. The agency reported a considerable internet lack of $80.1 million, a stark distinction to the web revenue of $6.3 million recorded in the identical quarter of 2022.

On a associated notice, Canaan’s inventory worth skilled a 6.45% decline, closing at $1.45 on Jan. 25. Because the begin of the month, the inventory has dropped by 32.87%.

Regardless of these setbacks, Canaan stays lively in product growth. Celebrating its tenth anniversary in the direction of the top of 2023, the corporate launched two new mining gadgets. Certainly one of these gadgets is notable for its excessive effectivity, with an vitality consumption score of fewer than 20 joules per terahash, rivaling the efficiency of gadgets from opponents like Microbt and Bitmain.

Earlier this month, Canaan revealed it had obtained subsequent orders for greater than 17,000 bitcoin mining machines from Cipher Mining Inc. and Stronghold Digital Mining Inc., with each consumers additionally being corporations listed on the Nasdaq.

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