Canaan raises $72 million from top investors including Brevan Howard and Galaxy Digital
Quick Take The Nasdaq-listed bitcoin mining firm has secured a $72 million strategic investment from BH Digital, a division of Brevan Howard, along with Galaxy Digital and Weiss Asset Management. The deal involves the issuance and sale of about 63.7 million American depositary shares at $1.131 per ADS.
Bitcoin mining firm Canaan Inc. has secured a $72 million strategic investment from BH Digital, a division of Brevan Howard, along with Galaxy Digital and Weiss Asset Management.
Canaan announced Tuesday that the investment, structured as equity purchases, involves the issuance and sale of about 63.7 million American depositary shares at $1.131 per ADS. The company noted that no warrants, options, or derivative instruments were issued as part of the deal.
"This investment marks an important milestone for Canaan," said Nangeng Zhang, chairman and CEO of the company. "It is expected to add approximately 63.7 million ADSs in institutional ownership, reflecting the growing confidence of global investors in our technology, execution, and long-term strategy."
Canaan plans to use the proceeds to support its financial position, reduce reliance on future capital raises, and fund utility-grade computing and energy infrastructure projects aimed at improving efficiency and revenue visibility.
The transaction is expected to close on Nov. 6, subject to customary conditions, according to the statement.
Founded in 2013, Canaan mainly focuses on designing high-performance computing chips, producing bitcoin mining rigs, and developing related software.
Last month, the company announced signing deal to supply mining rigs to a major Japanese utility company for a grid-stability research project — Japan's first publicly known state-linked mining initiative. It also secured an order from a U.S.-based bitcoin miner for over 50,000 units of its latest Avalon A15 Pro machines, scheduled for delivery by year-end.
Canaan's stock fell 14.6% to close at $1.11 on Tuesday, according to The Block's price page . It has declined 19% over the past five days and 50% year-to-date. Several other bitcoin mining-related stocks also dropped on Tuesday, with Hut 8 down 12.5% and Mara Holdings falling 6.7%.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The AI boom may follow the path of the 19th-century railway bubble, and builders may not be the ultimate winners
Goldman Sachs analyst Bobby Molavi compared the current situation to the 19th-century British railway mania: 500 companies spent more than the nation's annual income building 8,000 miles of railway, with most early investors losing out, while the real beneficiaries were the later "passengers." He pointed out that the current AI craze is driven by both debt and momentum, and that the S&P 500’s forward P/E ratio of 18x is only "a bit cheaper." Whether the builders can retain value is uncertain, and history does not offer an optimistic answer.
If Anthropic's IPO goes smoothly and the stock price rises next week, then everything remains the same for AI. Otherwise, some companies will go bankrupt.
The shrinking valuations of two major giants have triggered a chain reaction—investors are adopting more conservative revenue multiples for AI startups and are directly halting high-valuation financing for companies with zero revenue. Multiple venture capital firms have advised their portfolio companies to lower valuation expectations and to quickly build up cash reserves. Market participants warn that the outcome of Anthropic’s IPO will be a barometer for the industry: if successful, the boom will continue; if it fails, some companies may face elimination.
After the Brazilian election, political discount deepens; Morgan Stanley remains bullish on Petrobras (PBR.US), focusing on fuel pricing and dividends
Morgan Stanley still maintains its most optimistic "Overweight" rating, but has lowered its year-end 2027 target price from $31 to $25.
Corning (GLW.US) receives initial "Buy" rating from Jefferies! AI factories driving a fiber optic rush, with a potential global supply gap of up to 30%
For Corning, the recent profit growth mainly comes from the expansion of AI clusters. As the number of optical links crossing cabinets and campuses increases, customers need to deploy more optical fibers within limited conduit and cabinet space, thus driving demand for high-density optical cables and connection systems.
Crypto prices
More
