Canaan, a leading provider of supercomputing solutions, announced the successful delivery of over 2,000 Avalon Miner units in Kazakhstan, marking the commencement of joint mining operations by Canaan’s overseas-registered operating entity. More mining machines are expected to arrive in Kazakhstan throughout the week as Canaan completes the deployment and establishment of its overseas joint mining operations in full compliance of the rules and regulations of the markets it operates in.
Nangeng Zhang, Chairman and CEO of Canaan, said, “We upheld our business philosophy of operating in compliance with relevant laws and regulations, and chose to work with partners in overseas markets who are fully compliant and able to scale in meaningful ways. We are able to leverage our advantages in the supply chain to allocate machines to the facilities of strategic partners with lower electricity costs. ”
According to the company’s financial reporting for the third quarter, Canaan is currently operating mining machines with a total computing power of approximately 32,000 Thash/s, with a view of deploying and operationalizing 850,000 Thash/s of total computing power in the near term.
Canaan started its joint mining business in Kazakhstan, with its top three customers which are large corporations authorized by the country’s Ministry of Energy. Nangenng Zhang added, “After 6 months of practice and learning, Canaan is now fully compliant and aligned to the local legal, taxation, and business requirements, signing up to 1 million TH/s of computing power that is due for deployment by the end of January 2022.” Canaan is also under successful negotiation for coming joint mining projects for total power capacity of approximately 200 MW.
According to the company’s third quarter financial report, Nangeng Zhang also added that the cost of mining in the pilot run stage in the third quarter the gross margin was 61%, which is slightly higher than the gross margin of Canaan’s sales of mining machines. However, the company does not rule out the possibility of trading the bitcoins it holds in the future.
“Canaan plans to grow further through balancing production and maintenance needs of mining machines, in accordance with the company’s growth strategy and their increasing knowledge of the rapidly developing landscape,” Nangeng Zhang added.