Crypto Mining Rig Manufacturer Canaan Raises Over $50 Million in Preferred Shares Financing for R&D and Expansion
Crypto News – Crypto mining equipment manufacturer, Canaan, has successfully secured over $50 million in funding through a preferred shares financing initiative. The company, listed on the Nasdaq stock exchange, recently disclosed this achievement in an official filing. The capital was raised by issuing and selling up to 125,000 series A convertible preferred shares, although the identity of the institutional investor remains undisclosed.
Canaan has outlined its strategic intent for these funds, which primarily involves bolstering its research and development capabilities and expanding its production scale. The company emphasized its commitment to utilizing the net proceeds from the securities sale for these purposes, alongside supporting general corporate initiatives.
In terms of market performance, Canaan’s stock experienced a 6.45% decline, closing at $1.45 on Thursday. This drop represents a 32.87% decrease since the beginning of the current month, indicating the challenges faced by the company in recent trading sessions.
Looking at its financial performance, Canaan reported a significant net loss of $80.1 million in the third quarter of the previous year. This marked a stark contrast to the same period in 2022 when the company recorded a net income of $6.3 million, as indicated in its earnings report.
Despite these challenges, Canaan has made noteworthy strides in its business operations. Earlier this month, the company announced securing follow-on purchase orders for more than 17,000 bitcoin mining machines. These orders came from Cipher Mining Inc. and Stronghold Digital Mining Inc., both of which are also listed on the Nasdaq stock exchange. These developments signify Canaan’s continued presence and influence within the crypto mining industry.