Crypto miner Canaan to shutter non-core AI semiconductor business unit amid strategic realignment
The publicly traded crypto miner Canaan will close its non-core AI semiconductor business unit "in the coming months" amid a strategic company realignment.
The business unit dealt with ASIC chips for artificial intelligence edge computing. The firm spent 15% of its total operating expenses for fiscal year 2024 on its AI semiconductor business, and the unit brought in $900,000 in the same timeframe. Canaan notes it has been looking for a potential buyer of its AI semiconductor business as early as March 2022, the firm wrote in a Monday company release .
Canaan will now allocate resources to bolstering its bitcoin mining machine sales, self-mining operations, and consumer mining products businesses.
"As we navigate a dynamic and rapidly evolving market environment, I believe that doubling down on our core strengths in crypto infrastructure and bitcoin mining is the most strategic path forward for Canaan," said Canaan CEO and Chairman Nangeng Zhang in a statement. "By focusing our resources and talent on the areas where we have deep expertise and competitive advantage, we aim to drive sustainable growth, unlock long-term shareholder value, and continue playing a central role in the global crypto ecosystem."
In March, Canaan reported $269.3 million in total revenue and $142.8 million in operating expenses for the full year of 2024.
Canaan's stock (ticker CAN) traded down 5.3% to $0.58 per share on Monday, according to Yahoo Finance. The stock is down about 75% in the year-to-date period, giving the company a $241 million market cap.
