Canaan Inc., a bitcoin mining company, has received a $72 million strategic investment from BH Digital, a branch of Brevan Howard, as well as Galaxy Digital and Weiss Asset Management.
Canaan reported Tuesday that the transaction, structured as equity purchases, will comprise the issue and sale of approximately 63.7 million American depositary shares for $1.131 per ADS.
The business said that no warrants, options, or derivative instruments were issued as part of the transaction.
Quotes from the leaders
“This investment marks an important milestone for Canaan,” said Nangeng Zhang, chairman and CEO of the company.
“It is expected to add approximately 63.7 million ADSs in institutional ownership, reflecting the growing confidence of global investors in our technology, execution, and long-term strategy.”
He also said, “We are deeply grateful to Brevan Howard, Galaxy Digital, and Weiss Asset Management for their participation. This transaction underscores the Company’s growing alignment with institutional investors active in the digital-asset ecosystem.”
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In addition to funding utility-grade computer and energy infrastructure initiatives targeted at increasing efficiency and revenue visibility, Canaan intends to utilise the revenues to strengthen its financial position and lessen its dependency on future capital offerings.
The announcement said that, subject to customary circumstances, the deal is anticipated to conclude on November 6.
History of Canaan
Canaan was established in 2013 and primarily concentrates on creating bitcoin mining equipment, high-performance processors, and related software.
The firm stated last month that it had signed a contract to provide mining rigs for a grid-stability research project to a major Japanese utility provider. This was Japan’s first publicly recognised state-linked mining endeavour.
Additionally, a U.S.-based bitcoin miner placed an order for more than 50,000 of its most recent Avalon A15 Pro machines, which are expected to be delivered by year’s end.
Among the biggest mining firms, Canaan continues to be rated fourteenth. In line with the general trend of mining companies, the heritage rig manufacturer and miner grew throughout the last month. However, when Bitcoin dropped to $101,000, the shares dropped 14.62% over the previous day.
After reaching a minimum bid price of more than $1 for its American Depositary Shares (ADS), Canaan was once again in conformity with Nasdaq as of October 16.
The business, which operates out of Singapore, has indicated that it intends to stay compliant and maintain its Nasdaq listing.
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