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SINGAPORE - Canaan Inc. (NASDAQ:CAN), which has seen its stock surge over 36% in the past week according to InvestingPro data, announced Thursday that its U.S. subsidiary has signed a purchase agreement to provide approximately 6,840 Avalon A15Pro bitcoin mining machines to Cipher Mining Inc. (NASDAQ:CIFR) for delivery in the third quarter of 2025.
The miners will be produced at Canaan’s manufacturing facilities in the United States and Malaysia, according to the company’s press release statement. This marks Canaan’s first major initiative to offer large-scale domestic manufacturing support for U.S.-based bitcoin mining customers. The company maintains a strong balance sheet with more cash than debt, though InvestingPro analysis indicates rapid cash burn remains a concern.
Cipher Mining secured the miners through an option exercise announced in June 2024. Each Avalon A15Pro unit delivers an average hash rate of 221 terahashes per second with a power efficiency of approximately 16.6 joules per terahash. The equipment is expected to be deployed at Cipher’s Black Pearl facility.
This represents Cipher’s fourth order from Canaan, highlighting the ongoing business relationship between the two companies. The mining machines are intended to increase the operational hashrate at Cipher’s Black Pearl facility.
Nangeng Zhang, chairman and CEO of Canaan, noted that the company is seeing increased demand amid bitcoin’s price reaching new all-time highs. He also mentioned that customers are reassessing supply chain strategies in response to tariff pressures.
The agreement comes as the cryptocurrency mining sector adapts to changing market conditions, with companies prioritizing rapid deployment, return on investment, and reliability in their equipment purchases. While analysts project 74% revenue growth for Canaan this year, InvestingPro data reveals the company faces profitability challenges. InvestingPro subscribers can access 12+ additional key insights and a comprehensive Pro Research Report about Canaan’s financial health and market position.
In other recent news, Canaan Inc. reported mining 88 bitcoins in June 2025, a decrease from May’s production due to weather-related disruptions and maintenance issues. Despite the decline, the company increased its bitcoin holdings to a record 1,484 bitcoins by the end of June. Canaan is also discontinuing its non-core AI semiconductor business to focus on its primary operations in bitcoin mining machine sales and self-mining. This strategic shift is expected to improve capital efficiency and reduce operating expenses. Benchmark reiterated its buy rating on Canaan with a $2 price target, highlighting potential upside due to negative investor sentiment. Meanwhile, Northland initiated coverage with a Market Perform rating and a $1.50 price target, noting Canaan’s strategic positioning in the cryptocurrency mining sector. The company continues its North American expansion, with new computing power being transported to U.S. facilities. Canaan is also executing a $30 million stock repurchase program, reflecting confidence in its financial position.
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