Canaan Gains 4% After Securing Bitcoin Mining Deal with Luna Squares Texas

Canaan, a prominent crypto mining firm, saw its shares rise by 4% after announcing a new partnership with Luna Squares Texas, a Bitcoin mining operation based in West Texas. This collaboration is part of Canaan’s broader strategy to expand its North American presence and ramp up its mining capacity to 10 EH/s by mid-2025.

Under the joint mining agreement, both companies will share Bitcoin mining revenues generated from Canaan’s Avalon mining machines. The revenue split will vary based on the machine model. For Avalon A14 Series machines, the revenue will be split equally, with each company receiving 50%. However, for Avalon A15 Series machines, Canaan will initially receive 70% of the revenue to cover capital costs, after which the split will adjust to 50-50 for both parties.

Canaan’s chairman and CEO, Nangeng Zhang, emphasized that this partnership would strengthen the company’s presence in North America while contributing to the overall stability of the cryptocurrency mining industry.

As part of the agreement, the Willow Wells site, managed by Luna Squares Texas, will host 3,480 Avalon A14 machines and 5,664 Avalon A15 machines, contributing a total of 1.62 EH/s in computing power once fully operational. The site is expected to be energized by the first quarter of 2025. Following the announcement, Canaan’s stock saw a pre-market rise of 3.77%, according to Nasdaq data.