In a recent disclosure to the U.S. Securities and Exchange Commission (SEC), Canaan, a publicly traded manufacturer of bitcoin mining rigs, announced it has secured $50 million through the sale of preferred shares. This follows a successful acquisition of $25 million in a similar preferred share sale conducted by Canaan last year.
Canaan Sells Preferred Shares to an Unnamed Institutional Buyer
Canaan (Nasdaq: CAN), known for producing Avalon-branded application-specific integrated circuit (ASIC) bitcoin mining rigs, successfully garnered $50 million by selling preferred shares. This financial boost was highlighted in a January 2024 SEC Form 6-K filing, revealing that the shares were purchased by an undisclosed “institutional buyer.”
This announcement comes on the heels of Canaan’s previous venture in the previous year, where on Nov. 27, 2023, the company sold shares amounting to $25 million. The ASIC producer has specified that these funds will be allocated towards research and development as well as covering the company’s operational expenses. Established for a significant period, Canaan is recognized for launching the first publicly-available ASIC miner in 2013.
Canaan marked its entry into the public market with an initial public offering (IPO) on the Nasdaq Global Market in 2019. The firm debuted on Nasdaq on Nov. 21, 2019, with the ticker symbol “CAN,” amassing $90 million from the IPO. Nonetheless, since its introduction, CAN’s shares have seen a decline of 88% from their original value, with a 41% decrease observed year-to-date.
In the last five trading days, Canaan’s stock has experienced a downturn, dropping slightly over 17% in value against the U.S. dollar. Amidst this, Canaan has been proactive in rolling out new products. Celebrating its tenth anniversary towards the close of 2023, the company unveiled two new mining devices. One of these devices boasts an efficiency rating of under 20 joules per terahash, on par with the high-performance mining rigs produced by rivals Microbt and Bitmain. Recently, Cipher Mining has inked a deal to acquire 16,700 bitcoin miners from the company.
What do you think about Canaan raising $50 million from a preferred share sale? Share your thoughts and opinions about this subject in the comments section below.
source https://news.bitcoin.com/bitcoin-mining-rig-manufacturer-canaan-raises-50-million-through-preferred-shares-sale/
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