Canaan Inc. (NASDAQ: CAN), a prominent provider of high-performance computing solutions, witnessed a remarkable surge in its stock price on November 11, 2024, soaring by 5.62% within 24 hours. This significant movement was fueled by a major purchase agreement between Canaan Creative Global, the company's wholly-owned subsidiary, and HIVE Digital Technologies Ltd. (NASDAQ: HIVE), a leading cryptocurrency mining operator.
Under the terms of the deal, Canaan Creative Global will supply HIVE with 6,500 units of its cutting-edge Avalon A1566 mining machines. Each machine boasts an impressive computing power of 185 Terahash per second (TH/s), placing it among the most powerful mining rigs available in the market. The initial batch of 500 units has already been delivered and is scheduled for immediate installation, while the remaining 6,000 units will be shipped in monthly batches of 1,500 from December 2024 through March 2025.
This strategic partnership represents a significant upgrade for HIVE's mining infrastructure and capabilities, aligning with its broader strategy to enhance operational efficiency, expand operations, and prioritize sustainability through green energy initiatives. One such initiative is HIVE's plans to build a 100 MW mining facility in Paraguay, which is projected to be fully operational by Q3 2025 and powered by low-cost hydroelectric power, minimizing the company's carbon footprint.