Canaan Inc., a Bitcoin mining hardware manufacturer, has secured a $72 million equity investment from prominent institutional investors, including Brevan Howard, Galaxy Digital, and Weiss Asset Management. The deal, announced November 4, 2025, involves the sale of 63.7 million American depositary shares (ADSs) at $1.131 each, with no accompanying warrants or derivatives. This direct equity investment signals strong institutional confidence in Canaan's fundamentals and long-term strategy.
The funds from this investment round will be used to expand Canaan's North American data center footprint, boost its Bitcoin mining hardware production, and support research and development initiatives. Nangeng Zhang, chairman and CEO of Canaan, expressed gratitude for the participation of Brevan Howard, Galaxy Digital, and Weiss Asset Management, stating that the investment will support the company's continued innovation and growth across all areas of its business. He also emphasized that the investment reinforces Canaan's commitment to strengthening the Bitcoin ecosystem.
The investment comes at a time when Canaan's stock has faced turbulence. On November 4, 2025, its shares dropped 14.6% to $1.11, extending a year-to-date loss of 50%, amid a broader downturn in crypto-related stocks. However, company executives described the investment as a significant milestone that bolsters the balance sheet and reduces reliance on dilutive financing. The influx of capital is expected to fund high-return computing and energy infrastructure projects.
This investment reflects a broader trend in the industry, where Bitcoin miners are branching out into energy-efficient computing and AI infrastructure. Canaan itself is trying to join the AI trend with new types of data centers. This move aligns with recent product launches, such as the Avalon A16 mining rigs, which the company claims offer top-tier efficiency. Canaan also secured a substantial order for 50,000 Avalon A15 Pro units. Additionally, Canaan has agreed to supply mining equipment to a Japanese utility for grid-stability research, marking the country's first government-backed mining project.
Other companies in the Bitcoin mining sector are also making similar moves. Cipher Mining plans to raise $1.4 billion through a private debt offering to finance the construction of its Barber Lake HPC facility in Texas, following a lease agreement with AWS. Northern Data has agreed to sell its Bitcoin mining division, Peak Mining, for up to $200 million, marking a full pivot toward high-performance computing infrastructure. HIVE has boosted its Bitcoin hashrate to 23 EH/s and is expanding its HPC footprint with a $1.6 million land acquisition in Canada. Similarly, NIP Group views Bitcoin mining as a foundation for investing in AI and gaming.
Canaan's ability to manage its mining business while maintaining financial discipline will be key as the industry continues to evolve. With new partnerships, product launches, and the recent $72 million investment, the company is positioning itself to thrive in a market increasingly focused on energy efficiency and diversified income sources. As of November 5, 2025, Bitcoin is priced at $103,648.47, up 2.12% in the last 24 hours.
