Canaan is a bitcoin mining machine manufacturer that uses an application-specific integrated circuit. Genesis Digital Assets recently awarded Canaan a second contract to purchase 30,000 machines. Canaan and Genesis have reached an agreement that permits the sale of the ASIC-based bitcoin mining equipment.
Canaan Secures Follow-on Contract for 30K Bitcoin Miners From Genesis Digital Assets
At the end of August, Genesis Digital Assets purchased 20,000 of Canaan’s top ASIC bitcoin mining rigs and explained that it had the option to buy 180K more. Genesis Digital Assets raised $431 Million from strategic investors after the announcement. The company also announced a new Texas data center the week following the announcement. Genesis continues to follow up on the Canaan deal and signed a contract for additional ASIC miners with the manufacturer of mining rigs.
Abdumalik Mirakhmedov, the co-founder and executive chairman of Genesis, explained the 30,000 mining rigs will bolster the company’s operations. “This most recent order of machines will support our efforts to rapidly scale our operations as we work towards our goal of increasing our capacity to 1.9 gigawatts by the end of 2023,” Mirakhmedov said.
The option agreement for 180K ASIC miners is considered one of the “mining industry’s largest mining machine deal to date,” according to the two firms. “The option agreement entails three phases, with mining machines amounting to 30,000, 60,000, and 90,000 units to be purchased respectively. The acquired machines from the first phase of the contract are expected to be delivered in the first quarter of 2022,” Canaan said.
The mining rig manufacturer’s top device is the Avalonminer 1246 that was released last January. Avalonminer’s 1246 model generates around 90 terahash/second (TH/s) of power and 3,420 watts at the wall. Canaan’s machine, at $0.12 per kilowatt-hour (kWh) and today’s bitcoin exchange rate, would produce roughly $15 a day in profit, according to asicminervalue.com metrics.
The secondary sale prices for the Avalonminer 1246 are around $7,000 to $9,000 per device, while Canaan’s website doesn’t show a price for the unit. Canaan’s shares listed on Nasdaq were trading for $5.93 on December 30, 2020, and today shares exchange hands for $5.42, or 8.6% lower. On March 11, 2021, the firm’s stock tapped a high of $36.40, and at $5.42 shares are 85.10% lower than the 2021 price high.
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