Canaan raises $72 million from top investors including Brevan Howard and Galaxy Digital

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%.