Canaan to exit AI Chip business, Double Bitcoin mining in the middle of realignment
Canaan Inc. (Can), the Singapore-based manufacturer of Bitcoin Mining Machines, will lower his artificial intelligence (AI) semiconductor business to focus on major crypto operations.
Despite the growing trend of Bitcoin miners who varying their income through AI-related businesses, the development of AI chips is likely to be very competitive and ineffective for smaller companies.
Canaan said its AI unit, which brought about $ 900,000 income in 2024 (compared Total income of $ 88.8 million) and cost 15% of the company’s operational costs, failed to align the company’s long -term approach, the The company said on Monday.
“Duplication of our major strengths in Bitcoin’s crypto infrastructure and mining is the most strategic path forward,” the CEO Nangg Zhang said in the statement.
Prior to the transfer, the company said it started exploring options for the AI unit until March 2022, along with its sale or closed it completely. Today, Canaan expects to complete the phase-out in the coming months and expects a sharp collapse in costs once the exit ends.
Canaan is known for Avalon’s mining rigs, one of the earliest ASIC brands (application-specific integrated circuit) miners built for Bitcoin. The firm went public to NASDAQ in 2019 and continues to develop hardware while also expanding with self -mining products and consumers.
The decision, which comes after years trying to vary -the edges of the computing chips, is less surprised that the recent focus of miners and mining chip manufacturers in “American did“Bitcoin after winning the US election.
Recently, Markmark’s Mark Palmer wrote in his research that the rig maker shares do not reflect the potential potential from expanding the company’s own operations, especially in the United States.
Canaan’s shares slightly dropped on Monday, while the wider digital assets and markets equally -equivalent to almost positive. The stock fell 71% this year, while a Bitcoin Mining ETF, WGMI, refused about 20%.
