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Canaan Inc. (NASDAQ: CAN) has had a busy week. The NASDAQ-listed and Hangzhou, China-headquartered blockchain mining hardware maker announced this week that it entered a purchase order agreement with Genesis Digital Assets Limited valued at up to $93.63 million. 

The firm agreed to supply block reward miner Genesis Digital Assets with its A1246 AvalonMiner mining machine, set to be delivered and deployed throughout 2021. Canaan did not disclose the exact number of miners sold. The press release stated the new purchase would add 117MW in computing capacity to Genesis Digital Assets’ current total of 140MW.

“As an industry leader, Genesis Digital Assets requires Bitcoin mining solutions with robust computing power and significant cost efficiencies… Our long-term partnership with Genesis Digital Assets is aligned with our global ambitions, and we plan to repeat this success formula with more international customers going forward,”

said Nangeng Zhang, chairman and CEO of Canaan.

This deal follows a report of Canaan announcing a customer purchase order for 11,760 A1246 AvalonMiners rigs from Australian-based outfit Mawson Infrastructure Group Inc., which is adding 1.05EH additional to its global block reward mining operations.

Following the public release of the Genesis Digital Assets sale came a second announcement that Canaan entered a securities purchase agreement with unnamed institutional investors. The firm will conduct a registered direct placement of roughly $170 million of its American Depositary Shares (ADS) and warrants.

Each ADS represents 15 Class A ordinary shares of Canaan. The Company has also agreed to issue investors warrants to purchase up to an aggregate of 4,047,620 ADSs. This tranche of ADs represents 60,714,300 Class A Ordinary Shares at an exercise price of $16.38 per ADS.

Canaan claims the net proceeds from this offering will be used for R&D and expansion of production scale, working capital, etc., as disclosed in the prospectus supplement to be filed in connection with the offering.


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