Canaan Stock: Q4 Revival Masks Ongoing Challenges

Canaan Inc. (NASDAQ: CAN), a leading ASIC high-performance computing chip manufacturer, reported significant progress in the fourth quarter of 2024, with total revenue climbing to $88.8 million—representing an 80.9% year-over-year increase that surpassed the company's own forecast. This impressive growth was primarily driven by large-scale deliveries of the latest A15 series, which resulted in a record 9.1 million TH/s of computing power sold. Simultaneously, Canaan's mining operations capitalized on favorable Bitcoin market conditions, generating $15.3 million in mining revenue—a remarkable 312.5% increase compared to the previous year. Despite these positive developments, the firm still recorded a net loss of $92.9 million, though this represents a substantial improvement from the $139 million loss reported in the same period last year.

Strategic North American Expansion

Canaan recently formed a key partnership with Mawson Infrastructure Group Inc. (NASDAQ: MIGI), which will provide digital colocation services for approximately 17,453 latest-generation ASIC machines in its facilities. The initial three-year agreement includes roughly 64 MW of computing capacity and strengthens Mawson's position in the attractive PJM market, one of North America's largest deregulated energy wholesale markets. This collaboration, combined with another recently concluded 24-month Bitcoin mining contract in Texas, is expected to add approximately 4.7 EH/s to Canaan's North American mining operations. Most of this hashrate will be gradually installed by the second quarter of 2025, supporting Canaan's strategy to expand its global hashrate to 15 EH/s.

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Source StockWorld