Canaan Creative (NASDAQ: CAN), an established innovator in the cryptocurrency mining sector, has released its unaudited monthly operational update for January 2025. The report highlights significant progress across its business segments, including increased self-mining capacity, new product launches, and strategic partnership expansions.
Key Business Highlights and Management Commentary
Mr. Zhang Nangeng, Chairman and CEO of Canaan Creative, provided an overview of the company's performance. "January 2025 was a month of robust progress across all our business units," he stated. "We expanded our customer base, launched two new Avalon home mining products, and enhanced our self-mining capabilities, resulting in an increase in our Bitcoin holdings."
A significant milestone was the signing of a purchase agreement with a strategic U.S.-based client for Avalon A15XP miners at the beginning of the quarter. Furthermore, the company expanded its joint mining agreement with Luna Square, increasing the total capacity from 30 megawatts (MW) to 36 MW.
The company's global deployed hash rate saw substantial growth, increasing by 18.2% from 5.44 EH/s in December 2024 to 6.43 EH/s in January 2025. This expansion was achieved while maintaining a highly competitive power cost of $0.04 per kWh. The average profit-sharing ratio also improved, rising from 53.7% to 57.3% by the end of the month.
These achievements are crucial steps toward the company's goal of reaching 10 EH/s in North America and 15 EH/s in global hash rate by mid-2025.
January 2025 Bitcoin Mining Operations Snapshot (Unaudited)
The following metrics provide a detailed look at Canaan's mining performance for the month.
- Total Bitcoin Mined: 88 BTC (compared to 62 BTC in December 2024)
- Total Bitcoin Holdings: The number of Bitcoin held on the company's balance sheet, including all receivables in cryptocurrency but excluding customer deposit-held Bitcoin.
- Global Deployed Hash Rate: 6.43 EH/s
- Average Power Cost: $0.04 per kWh (the power-weighted average cost assuming 100% operational uptime for all deployed miners)
- Average Profit-Sharing Ratio: 57.3% (the weighted average percentage of total revenue Canaan is entitled to under its applicable joint mining arrangements)
Hash Rate Deployment Status
Understanding the breakdown of hash rate provides insight into current and future capacity.
- Installed Hash Rate: The total theoretical hash rate if all energized miners (including those temporarily offline) were running.
- Energized Hash Rate: The hash rate from miners that are currently powered on and operational.
- Pending Deployment Hash Rate: Hash rate from miners that have arrived in the country of the mining project but are awaiting installation.
- Total Global Hash Rate: The sum of both deployed and pending deployment hash rate.
Note: Due to the upcoming expiration of certain project partnerships in early February 2025, the company anticipates shutting down approximately 0.42 EH/s of mining hash rate in Ethiopia.
Recent Operational Developments
Expansion of Self-Mining Operations
Canaan has been actively expanding its self-mining footprint. The company amended its joint mining agreement with Luna Squares to add a 6 MW mining capacity in Pecos, Texas, complementing the existing 30 MW site in Willow Wells, Texas.
By the end of January, the Pecos site was already operational, contributing approximately 0.27 EH/s of hash power from 1,704 Avalon A14 series miners. The company expects to deploy additional miners across its Texas sites throughout the first quarter.
Furthermore, Canaan completed the previously announced miner upgrade at Stronghold's Panther Creek facility. This upgrade involved replacing older model miners with 6,000 high-efficiency Avalon A14 series miners, which boast an average hash rate of 154 TH/s. This initiative increased the site's total hash rate by 26%, from 0.74 EH/s to 0.93 EH/s. The full effect of this upgrade is expected to be reflected in the February 2025 mining report.
Product Innovation and Launches
At the 2025 Consumer Electronics Show (CES) in Las Vegas, Canaan unveiled two groundbreaking products for the home mining market: the Avalon Mini 3 and the Avalon Nano 3S.
These innovative products merge efficient Bitcoin mining with practical home heating solutions, making personal mining more accessible and functional.
- Avalon Mini 3: This 800-watt unit is designed as a smart home device, offering a hash rate of 37.5 TH/s. It functions as both a Bitcoin miner and a space heater, featuring a sleek, modern design and quiet operation. It can be managed conveniently via a mobile app.
- Avalon Nano 3S: An upgrade to the original Nano 3, this 140-watt device is more compact and portable. It offers a computational power increase of nearly 50% compared to its predecessor, with a hash rate of 6 TH/s.
Since their launch, both products have received positive feedback and are currently available for pre-order on the company's official website. For those interested in exploring the future of home mining, these devices represent a significant step forward. 👉 Discover advanced home mining solutions
Frequently Asked Questions
What does "deployed hash rate" mean?
Deployed hash rate refers to the total theoretical computational power of all miners that are installed, energized, and capable of mining, even if some are temporarily offline. It is a key metric for gauging a mining company's operational capacity.
How does profit-sharing work in joint mining agreements?
In these arrangements, a company like Canaan provides the miners and expertise, while a partner provides the low-cost power and infrastructure. The Bitcoin mined is then split between the parties according to a pre-agreed ratio, after accounting for electricity costs.
Is home Bitcoin mining profitable?
Profitability depends on several factors, including the cost of electricity, the efficiency of the mining device (hash rate vs. power consumption), and the current price of Bitcoin. Newer, more efficient models like the Avalon Mini 3 are designed to be profitable in areas with moderate electricity costs.
What is the significance of a low power cost?
Electricity is the primary ongoing expense in Bitcoin mining. A lower cost per kWh, such as Canaan's achieved rate of $0.04, directly increases profit margins by reducing the operational cost of running each miner.
What are forward-looking statements?
These are projections about future performance based on current expectations and assumptions. They are subject to numerous risks and uncertainties, and actual results may differ materially due to factors like Bitcoin price volatility, regulatory changes, and operational challenges.
Why would a company shut down mining operations in a location like Ethiopia?
Operations may be shut down due to the expiration of hosting agreements, increased local electricity costs, regulatory changes, or a strategic decision to reallocate more efficient miners to locations with more favorable conditions, such as lower-cost power.
This update contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, identified by words like "will," "expect," "anticipate," and "intend," are based on current expectations and involve risks and uncertainties. Actual results may differ due to factors including Bitcoin market conditions, regulatory developments, and operational challenges. Canaan Creative undertakes no obligation to update forward-looking statements except as required by law.