Canaan Secures Major Mining Deal With HIVE, Shares Soar On Equipment Order

On Monday, Canaan Inc. CAN revealed that its wholly owned Singapore subsidiary, Canaan Creative Global, entered into a purchase agreement with HIVE Digital Technologies Ltd. HIVE for Avalon A1566 mining machines.

Under the agreement, Canaan Creative Global will supply HIVE with 6,500 Avalon A1566 miners, each offering an average computing power of 185 Terahash per second (TH/s). Canaan and HIVE Digital stocks gained after the update.

The initial delivery of 500 units has already been completed, and these miners are scheduled for immediate installation.

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The remaining 6,000 units will be shipped in monthly batches of 1,500 from December 2024 through March 2025.

Nangeng Zhang, chairman and CEO of Canaan, expressed appreciation for HIVE’s choice of Canaan’s mining solutions, noting the significance of securing such a substantial order from a long-time client. He highlighted HIVE’s strong operational efficiency, crediting their skilled global team for achieving one of the industry’s highest Bitcoin production rates per active hashrate. Zhang emphasized the importance of HIVE as a strategic partner, especially given their transparent business practices and strong commitment to ESG principles.

The Avalon Miner A1566, part of Canaan’s second-generation 1xJ/T series, delivers enhanced power efficiency and a reliable mining experience. This product reflects Canaan’s focus on ongoing market research and investment in cutting-edge product development.

In the second quarter of 2024, Canaan reported a revenue of $71.86 million, down from $73.85 million a year ago, exceeding analyst consensus expectations of $51.90 million.

HIVE reported first-quarter sales of $32.20 million, up by 36.64%, beating the analyst consensus estimate of $24.32 million.

Cryptocurrency stocks got a boost from Donald Trump’s presidential win, as he had assured a favorable regulatory environment during his election campaigns.

Price Actions: CAN stock is up 17.5% at $1.48 premarket at last check Monday. HIVE is up 15.7%.

Photo: rafapress/Shutterstock.com

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