Canaan Inc.(“Canaan” or the “Company”), an innovator in crypto mining, today released its unaudited bitcoin mining update for the month ending January 31, 2025.
Management Commentary
“In January, we made solid progress across all segments of our business, as we expanded our customer base, announced two Avalon Home consumer products, and advanced our self-mining capacity, leading to an increase in our bitcoin holdings,” said Nangeng Zhang, chairman and chief executive officer of Canaan. “Early in the quarter, we announced that we signed a purchase agreement with a strategic U.S. customer for Avalon A15XP miners. Additionally, we expanded our joint mining agreement with Luna Square from 30MW to 36MW and, to date, have energized 1,704 A14 series Avalon miners, with more expected to come online in Texas in the first quarter.
Sequentially, we increased the number of bitcoins that we mined, mining 88 bitcoins in January compared with 62 in December. We also increased our month-end deployed global hashrate by 18.2%, from 5.44 EH/s to 6.43 EH/s, and we improved our month-end average revenue split from 53.7% to 57.3% while maintaining the very competitive all-in power cost of 4 cents/kWh. We remain on track to reach 10 EH/s in North America and 15 EH/s globally by mid-2025.
“At CES in Las Vegas, we launched two groundbreaking Avalon Home products: the 37.5 TH/s Avalon Mini 3 and the 6 TH/s Nano 3S. The Avalon Mini 3 is a smart-home, app-controlled, 800-watt space heater that mines bitcoin, featuring a sleek design and quiet operation. The 140-watt Avalon Nano 3S, an upgraded version of the original Nano 3, features a compact, portable design, and nearly a 50% increase in computing power than its predecessor. Since their launch, both products have received many positive reviews and are available for pre-order on our website.”
Bitcoin Mining Updates (unaudited)
| Key Metrics | Results (Rounded Numbers) |
| Bitcoins Mined During the Month | 88 Bitcoins |
| Month-End Bitcoins Owned by Canaan Inc. on Balance Sheet1 | 1,319 Bitcoins |
| Month-End Deployed Hashrate (EH/s) | 6.43 EH/s |
| Month-End Operating Hashrate (EH/s) | 5.53 EH/s |
| Month-End Average Revenue Split2 | 57.3 % |
| Average All-in Power Cost During the Month3 | US$0.04/kWh |
Notes:
1. Defined as the total number of bitcoins owned by the Company on its Balance Sheet including any cryptocurrency receivables, and excluding bitcoins that the Company has received as customer deposits.
2. Defined as the weighted average percentage that Canaan would share from the total revenues generated according to the applicable joint mining arrangements if 100% of the mining machines consisting of Installed Computing Power (as defined below) were energized.
3. Defined as the weighted average cost of power if 100% of the mining machines consisting of Installed Computing Power were energized.
| Current Mining Projects (As of )： | |||||
| Regions in alphabetical order (A to Z) |
Active Mining Projects Count |
Energized Computing Power4 |
Installed Computing Power5 |
Expected Computing Power6 |
Estimated Total Computing Power7 |
| Global | 9 | 5.53 EH/s | 6.43 EH/s | 0.17 EH/s | 6.60 EH/s |
| America | 2 | 0.93 EH/s | 1.19 EH/s | 0.31 EH/s | 1.51 EH/s |
| Canada | 1 | 0.02 EH/s | 0.02 EH/s | 0 EH/s | 0.02 EH/s |
| Ethiopia | 4 | 4.28 EH/s | 4.64 EH/s | -0.42 EH/s8 | 4.22 EH/s |
| Kazakhstan | 1 | 0.27 EH/s | 0.54 EH/s | 0.27 EH/s | 0.81 EH/s |
| Middle East | 1 | 0.03 EH/s | 0.04 EH/s | 0 EH/s | 0.04 EH/s |
Notes:
4. Defined as the amount of computing power that could theoretically be generated if all mining machines that have been energized are currently in operation including mining machines that may be temporarily offline.
5. Defined as the sum of Energized Computing Power and computing power that has been installed but not yet energized, if any.
6. Defined as the amount of computing power that has been delivered to the country where each mining project is located but not yet installed.
7. Defined as the sum of Installed Computing Power and Expected Computing Power.
8. Canaan Inc.expects to bring offline approximately 0.42 EH/s of its mining computing power in as certain project collaborations expire in early .
Summary of Recent Operational Updates:
- Expansion of Self-Mining Operations:
- Entered into an amendment to the joint mining agreement with Luna Squares Texas LLC. Canaan Inc. has secured another 6MW of mining operation at Pecos, Texas, with Luna Squares Texas LLC in addition to the existing 30 MW site in Willow Wells, Texas.
- Exited January with approximately 0.27EH/s of mining machines, or 1,704 A14 series Avalon miners, energized at the Pecos site. Canaan Inc. expects more miners to be deployed in Texas in the first quarter.
- Completed the previously announced mining device upgrade at Stronghold’s Panther Creek facility in January. Six thousand Avalon A14 series mining machines have been installed at the site to replace older Avalon models, bringing up the site’s total computing power by 26%, from 0.74 EH/s to 0.93 EH/s, each rig with a weighted average hashrate of 154 TH/s. Canaan Inc. expects this mining rig upgrade to be reflected in its mining operations in February 2025.
- Product Innovation:
- Introduced the Avalon Mini 3 and Nano 3S Bitcoin mining heaters for home use at CES 2025. The two innovative devices combine efficient Bitcoin mining with home heating solutions to democratize cryptocurrency mining for individuals.
