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Crypto mining equipment manufacturer Canaan raised over $50 million in preferred stock financing to boost its research and development capabilities and expand its production scale.
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The Nasdaq-listed company announced in a filing this week that it raised capital from an institutional investor by issuing and selling up to 125,000 Series A convertible preferred shares. The company did not name the investor.
In the filing, Canaan said, “The company plans to use the net proceeds from the sale of the securities for research and development, expansion of production scale, and other general corporate purposes.”
The company’s shares closed Thursday at $1.45, down 6.45%. The stock is down 32.87% since the beginning of January.
According to the company’s earnings report, the mining equipment manufacturer reported a net loss of $80.1 million in the third quarter of last year, compared to net income of $6.3 million in the same period of 2022.
Earlier this month, Canaan announced that it had secured follow-on purchase orders for more than 17,000 bitcoin mining machines from Cipher Mining Inc. and Stronghold Digital Mining Inc., both Nasdaq-listed companies.
Who is Canaan?
Canaan Inc. created the world’s first ASIC Bitcoin miner and is also the first mining machine manufacturer to be listed on Nasdaq. Canaan is dedicated to the development and sale of Bitcoin mining machines and related services. Canaan’s headquarters is in Singapore and it has offices in China, North America, and Central Asia.
Its machines are sold in 21 countries and regions around the world. Currently, Canaan is focused on the development of “green mining” as a strategic approach that continuously encourages the development of technology, products, and services.
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