Canaan Inc. (CAN): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how Canaan Inc. (CAN), a Nasdaq-listed company, operates in the crypto mining world? Established in 2013, Canaan has shipped the world's first mining machines incorporating ASIC technology in bitcoin's history under the brand name Avalon. With preliminary unaudited financial results for the fourth quarter of 2024, total revenues are expected to be approximately US$89 million, and the gross loss narrowed to be in the range of US$10 million to US$6 million, let's delve into its history, ownership structure, mission, operational mechanisms, and revenue generation strategies.

Canaan Inc. (CAN) History

Canaan's Founding Timeline

Year established

Canaan Inc. was established in 2013.

Original location

The company was originally located in Beijing, China.

Founding team members

The founding team members included Nangeng Zhang, who serves as the Chairman and CEO.

Initial capital/funding

Details regarding the initial capital and funding are not widely publicized. However, Canaan has since raised capital through various funding rounds and its IPO in 2019.

Canaan's Evolution Milestones

Canaan's Transformative Moments

• Initial Focus on ASIC Technology: The strategic decision to concentrate on Application-Specific Integrated Circuit (ASIC) technology for Bitcoin mining set the company apart, enabling the development of more efficient and powerful mining hardware.
• Successful IPO in the U.S.: Canaan's listing on the NASDAQ in 2019 was a transformative moment, providing access to global capital markets and enhancing its international profile. Despite being the first of its kind, the IPO raised less than initially targeted, signaling caution among investors.
• Technological Innovation: The continuous development and launch of advanced chip technologies, such as the 7nm chip miners, have been crucial in maintaining a competitive edge.
• Market Adaptations: Navigating market volatility and supply chain disruptions, particularly in 2020 and 2024, demonstrated the company's resilience and adaptability.
• Revenue Growth and Fluctuations: The significant revenue growth in 2021 and 2022, followed by a decrease in 2024, highlights the impact of cryptocurrency market dynamics on Canaan's financial performance.

Learn more about the investors behind Canaan: Exploring Canaan Inc. (CAN) Investor Profile: Who’s Buying and Why?

Canaan Inc. (CAN) Ownership Structure

Canaan Inc. features a mixed ownership structure, encompassing a combination of institutional, public, and insider holdings. This blend reflects diverse investor interests and perspectives in the company's strategic direction.

Canaan Inc.'s Current Status

Canaan Inc. is a publicly traded company, listed on the Nasdaq Stock Market under the ticker symbol CAN. This allows the general public and institutional investors to purchase shares in the company, contributing to its capital base and market valuation.

Canaan Inc.'s Ownership Breakdown

The ownership of Canaan Inc. is distributed among various shareholders, including institutional investors, public shareholders, and company insiders. As of December 31, 2023, the ownership breakdown is as follows:

Canaan Inc.'s Leadership

Canaan Inc.'s leadership team is responsible for the strategic direction and operational management of the company. Key members of the leadership team as of April 2025 include:

• Nangeng Zhang: Chairman and Chief Executive Officer
• Jianeng Liu: Director and Chief Operating Officer
• Lei Tong: Director and Chief Financial Officer

For more insight into the company's goals, see: Mission Statement, Vision, & Core Values of Canaan Inc. (CAN).

Canaan Inc. (CAN) Mission and Values

Canaan Inc. aims to revolutionize high-performance computing through blockchain and AI, while upholding innovation, win-win partnerships, and integrity.

Canaan's Core Purpose

Official mission statement

Canaan's mission statement is: 'To enable blockchain and AI innovation through high-performance computing.'

Vision statement

Canaan's vision includes:

• Becoming the foundation of the high-performance computing era.
• Spearheading technological advancements in blockchain and AI.

Company slogan/tagline

Canaan's slogan reflects its focus on:

• High-performance computing solutions for blockchain and AI.

To gain more insights into the company's shareholders and investment dynamics, explore: Exploring Canaan Inc. (CAN) Investor Profile: Who’s Buying and Why?

Canaan Inc. (CAN) How It Works

Canaan Inc. specializes in the design and sale of cryptocurrency mining hardware, primarily Bitcoin mining machines, enhancing the efficiency of mining operations through advanced technology.

Canaan Inc.'s Product/Service Portfolio

Canaan Inc.'s Operational Framework

Canaan Inc.'s operations are structured around the design, manufacturing, and sale of Bitcoin mining hardware and AI chips. The company's value creation is driven by technological innovation and efficient supply chain management.

• Research and Development: Canaan invests heavily in R&D to develop advanced mining hardware and AI chips.
• Manufacturing: The company outsources manufacturing to maintain cost-efficiency and scalability.
• Sales and Marketing: Canaan markets its products globally, targeting major cryptocurrency mining regions and AI development hubs.
• Customer Support: They provide technical support and after-sales service to ensure customer satisfaction and retention.

Canaan Inc.'s Strategic Advantages

Canaan Inc. maintains several strategic advantages that enable its success in the competitive cryptocurrency and AI markets.

• Technological Innovation: Focus on developing high-performance, energy-efficient mining hardware.
• Market Position: Established as one of the leading manufacturers of Bitcoin mining hardware.
• Supply Chain Management: Efficient supply chain ensures timely delivery and cost-effectiveness.
• AI Chip Development: Diversification into AI chips provides growth opportunities beyond cryptocurrency mining.

To gain more insights into the investors and motivations behind Canaan Inc., check out: Exploring Canaan Inc. (CAN) Investor Profile: Who’s Buying and Why?

Canaan Inc. (CAN) How It Makes Money

Canaan Inc. primarily makes money by designing and selling advanced Application-Specific Integrated Circuit (ASIC) chips used in Bitcoin mining hardware, along with manufacturing and selling the mining hardware itself.

Canaan Inc.'s Revenue Breakdown

The following table breaks down Canaan Inc.'s revenue streams, their percentage of the total revenue, and their growth trends based on the latest available financial data.

Canaan Inc.'s Business Economics

Canaan Inc.'s business economics are significantly influenced by the price of Bitcoin and the overall demand for Bitcoin mining hardware. Here are some key aspects:

• Pricing Strategy: The pricing of Canaan's mining machines is heavily influenced by the current and expected future prices of Bitcoin. Higher Bitcoin prices typically allow Canaan to charge more for its mining hardware.
• Production Costs: The cost of manufacturing ASIC chips and mining hardware is a critical factor. Efficiency in production and supply chain management directly impacts profitability.
• Technological Advancement: Continuous investment in research and development to produce more efficient and powerful mining chips is essential. Newer, more efficient chips command higher prices and attract more customers.
• Market Competition: Canaan faces competition from other Bitcoin mining hardware manufacturers. Competitive pricing and product differentiation are necessary to maintain market share.
• Bitcoin Halving Impact: The Bitcoin halving events, which reduce the block reward for miners, can affect the demand for mining hardware. Miners often seek more efficient machines to maintain profitability post-halving.

Canaan Inc.'s Financial Performance

Canaan Inc.'s financial performance is closely tied to the volatile cryptocurrency market. Key highlights include:

• In 2023, Canaan faced significant challenges, including a 70.4% year-over-year decrease in net revenues, totaling CNY 1.394 billion (US$195.7 million).
• The company reported a net loss of CNY 1.687 billion (US$237.1 million) for 2023, compared to a net loss of CNY 752.5 million in 2022.
• Total computing power sold in 2023 decreased by 30.4% year-over-year, amounting to 7.0 million Thash/s.
• As of December 31, 2023, Canaan held cash and cash equivalents of CNY 2.304 billion (US$323.7 million).
• Canaan is actively focusing on R&D to improve the energy efficiency and performance of its mining machines, aiming to reduce costs and enhance competitiveness.

To gain further insights into the company's goals and values, explore the Mission Statement, Vision, & Core Values of Canaan Inc. (CAN).

Canaan Inc. (CAN) Market Position & Future Outlook

Canaan Inc. is navigating a challenging but promising landscape in the cryptocurrency mining sector. Despite a significant miss in EPS in Q4 2024, the company demonstrated strong revenue growth, and is strategically expanding its market presence, particularly in North America, with a focus on increasing its mining hash rate. Mission Statement, Vision, & Core Values of Canaan Inc. (CAN).

Competitive Landscape

Note: Market share data is not available in the search results.

Opportunities & Challenges

Industry Position

• Canaan Inc. is recognized as a key player in the high-performance computing sector, specializing in ASIC chip design and cryptocurrency mining solutions.
• The company is focused on expanding its mining hash rate, targeting 10 EH/s in North America and 15 EH/s globally by mid-2025.
• Canaan is enhancing its product line, with the A15 series contributing $73 million in mining machine revenue in Q4 2024.
• The company is also diversifying into consumer products with the Avalon Home series.

In Q4 2024, Canaan reported revenues of $89 million, exceeding expectations. Full year 2024 revenue was $270 million, a 27.4% increase year-over-year. The company aims for total revenues between $900 million and $1.1 billion for fiscal year 2025.

Despite these positive indicators, Canaan faces challenges. The company posted an EPS of -$0.33, missing the forecasted -$0.08. However, Canaan achieved its first EBITDA profitability since Q1 2023, at $19.3 million.

Canaan secured a Series A-1 Preferred Shares financing agreement worth up to $200 million to fund growth initiatives. The company is strategically focusing on North American expansion, which could command premium valuations and better regulatory clarity.

Canaan's overall financial health score is 1.69, labeled as 'WEAK', with concerns in profitability and growth.

The company is exposed to currency risks that could affect financial results.

The company has been substantially diluted in the past year and has experienced a volatile share price over the past 3 months.

Canaan mined 62 bitcoins in December 2024, holding 1,293 bitcoins on its balance sheet.

Canaan's strategic investments in R&D, supply chain, and mining deployment position it well to capitalize on the anticipated market upturn.

Canaan's expansion aligns with the anticipated Bitcoin bull market and upcoming halving event.

Canaan secured significant orders from major players including CleanSpark (3,800 miners) and HIVE Digital Technologies (11,500 miners).

Canaan is expanding its mining operations in Texas through a partnership with Luna Squares Texas and upgraded its fleet with Stronghold Digital Mining in Pennsylvania.

The launch of the Avalon Q, a 90 TH/s home mining machine, with deliveries expected in April 2025, expands Canaan's product offerings.