Investor completes sale of converted Canaan shares in open market

SINGAPORE - Canaan Inc. (NASDAQ:CAN) announced Tuesday that an institutional investor has fully converted all its Series A-1 Convertible Preferred Shares into American Depositary Shares (ADSs) and sold them through open market transactions. The stock, currently trading at $0.73, has experienced significant volatility, dropping 11% in the past week and over 60% in the last six months. According to InvestingPro analysis, the company appears undervalued based on its Fair Value estimates.

The investor had previously participated in a financing agreement announced on March 10, 2025, which provided Canaan with gross proceeds of $100 million in its first tranche. According to the company, the parties mutually agreed to terminate the second tranche of the planned $200 million financing effective April 30, 2025.

Canaan, which specializes in cryptocurrency mining technology, reported that the investment helped support its research and development initiatives for advanced mining solutions, bitcoin mining operations, and global market expansion.

The company noted in its recent operations update that its deployed hashrate increased to 8.15 EH/s in June, representing approximately 30% growth from 6.28 EH/s in February. This includes 4.22 EH/s from operations in Ethiopia using renewable energy sources and 3.66 EH/s deployed in North America, with an additional 1.00 EH/s currently being transported to the United States.

Established in 2013, Canaan focuses on ASIC high-performance computing chip design and production. The company completed its initial public offering on the Nasdaq Global Market in 2019.

The announcement was made in a press release statement from the company.

In other recent news, Canaan Inc. announced a significant purchase agreement to supply Cipher Mining Inc. with approximately 6,840 Avalon A15Pro bitcoin mining machines, slated for delivery in the third quarter of 2025. This initiative marks Canaan’s first major push to support U.S.-based bitcoin mining customers with domestic manufacturing. Meanwhile, Canaan reported mining 88 bitcoins in June 2025, a decrease from the previous month due to weather-related disruptions and maintenance issues affecting operations in Texas and Ethiopia.

In a strategic move, Canaan decided to exit its AI semiconductor business to focus on its core bitcoin mining operations. The AI unit had contributed about $0.9 million in revenue during fiscal year 2024 but accounted for around 15% of the company’s total operating expenses. On the analyst front, Benchmark reiterated a buy rating for Canaan with a $2 price target, highlighting potential upside based on revenue estimates and bitcoin holdings. Northland initiated coverage with a Market Perform rating and a $1.50 price target, acknowledging Canaan’s historical role as an innovator in cryptocurrency mining hardware.

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