In a latest disclosure to the U.S. Securities and Change Fee (SEC), Canaan, a publicly traded producer of bitcoin mining rigs, introduced it has secured $50 million via the sale of most popular shares. This follows a profitable acquisition of $25 million in the same most popular share sale carried out by Canaan final yr.
Canaan Sells Most popular Shares to an Unnamed Institutional Purchaser
Canaan (Nasdaq: CAN), identified for producing Avalon-branded application-specific built-in circuit (ASIC) bitcoin mining rigs, efficiently garnered $50 million by promoting most popular shares. This monetary increase was highlighted in a January 2024 SEC Type 6-Ok submitting, revealing that the shares had been bought by an undisclosed “institutional purchaser.”
This announcement comes on the heels of Canaan’s earlier enterprise within the earlier yr, the place on Nov. 27, 2023, the corporate bought shares amounting to $25 million. The ASIC producer has specified that these funds shall be allotted in direction of analysis and growth in addition to masking the corporate’s operational bills. Established for a major interval, Canaan is acknowledged for launching the primary publicly-available ASIC miner in 2013.
Canaan marked its entry into the general public market with an preliminary public providing (IPO) on the Nasdaq World Market in 2019. The agency debuted on Nasdaq on Nov. 21, 2019, with the ticker image “CAN,” amassing $90 million from the IPO. Nonetheless, since its introduction, CAN’s shares have seen a decline of 88% from their unique worth, with a 41% lower noticed year-to-date.
Within the final 5 buying and selling days, Canaan’s inventory has skilled a downturn, dropping barely over 17% in worth in opposition to the U.S. greenback. Amidst this, Canaan has been proactive in rolling out new merchandise. Celebrating its tenth anniversary in direction of the shut of 2023, the corporate unveiled two new mining units. One in all these units boasts an effectivity ranking of below 20 joules per terahash, on par with the high-performance mining rigs produced by rivals Microbt and Bitmain. Lately, Cipher Mining has inked a deal to accumulate 16,700 bitcoin miners from the corporate.
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