Canaan (NASDAQ:CAN), a provider of supercomputing solutions, has confirmed the successful delivery of more than 2,000 Avalon Miner units in Kazakhstan, “marking the commencement of joint mining operations by Canaan’s overseas-registered operating entity,” according to an update shared with CI.
As mentioned in the announcement, more mining machines are set to arrive in Kazakhstan throughout the week as Canaan “completes the deployment and establishment of its overseas joint mining operations in full compliance of the rules and regulations of the markets it operates in.”
Nangeng Zhang, Chairperson and CEO of Canaan, stated:
“We upheld our business philosophy of operating in compliance with relevant laws and regulations, and chose to work with partners in overseas markets who are fully compliant and able to scale in meaningful ways. We are able to leverage our advantages in the supply chain to allocate machines to the facilities of strategic partners with lower electricity costs.”
According to the firm’s financial reporting for Q3 2021, Canaan is presently operating mining machines with a total computing power of around 32,000 Thash/s, with “a view of deploying and operationalizing 850,000 Thash/s of total computing power in the near term.”
Canaan began its joint mining business in Kazakhstan, with its top three clients which are large corporations that are authorized by the nation’s Ministry of Energy.
Nangenng Zhang added:
“After 6 months of practice and learning, Canaan is now fully compliant and aligned to the local legal, taxation, and business requirements, signing up to 1 million TH/s of computing power that is due for deployment by the end of January 2022. Canaan is also under successful negotiation for coming joint mining projects for total power capacity of approximately 200 MW.”
According to the firm’s Q3 financial report, Nangeng Zhang added that the cost of mining in the pilot run stage in the third quarter had gross margin of 61%, which is higher than the gross margin of Canaan’s sales of mining equipment. But the firm does “not rule out the possibility of trading the bitcoins it holds in the future.”
Nangeng Zhang further noted:
“Canaan plans to grow further through balancing production and maintenance needs of mining machines, in accordance with the company’s growth strategy and their increasing knowledge of the rapidly developing landscape.”
As covered, Canaan is an established provider of supercomputing solutions, distinguished for cost-efficiencies and overall performance. In addressing the limitations of existing computing hardware, Canaan aims to “advance the world we live in by powering transformative technologies.”
Canaan is known for having invented the first ASIC-powered Bitcoin mining machine in 2013, which helped with supporting the growth of a computationally advanced BTC mining sector. Currently, Canaan continues to be “the second largest designer and manufacturer of bitcoin mining machines globally.”
Supported by academic research, industry expertise in semiconductor design, and backed by a network of partners, Canaan remains focused on expanding its suite of advanced hardware offerings.