Bitcoin News Update: Major Institutions Support Canaan’s AI-Powered Mining Growth with $72 Million Funding

Canaan Inc. (NASDAQ: CAN), a prominent player in the

mining equipment sector, has attracted a $72 million strategic investment from major institutional investors Brevan Howard, Galaxy Digital, and Weiss Asset Management. This move demonstrates renewed institutional faith in Canaan’s long-term vision despite current market headwinds. Announced on November 4, the deal involves the sale of 63.7 million American depositary shares (ADSs) at $1.131 each, with no accompanying warrants or derivatives, highlighting a direct equity investment, as reported by . Funds from this round will be used to grow Canaan’s North American data center footprint, boost its Bitcoin mining hardware production, and support R&D initiatives, according to .

This development comes as

faces turbulence in the stock market. On November 4, its shares dropped 14.6% to $1.11, extending a year-to-date loss of 50%, amid a broader downturn in crypto-related stocks, as noted by . Despite the decline, company executives described the investment as a significant milestone that bolsters the balance sheet and lessens dependence on dilutive fundraising methods, The Block reported. Nangeng Zhang, chairman and CEO, pointed out that the deal’s institutional backing signals “increasing trust in our technological capabilities and execution.”

This investment reflects a broader trend in the industry, where Bitcoin miners are branching out into energy-efficient computing and AI infrastructure. For example, CleanSpark has recently shifted focus to AI data centers, acquiring 271 acres near Houston and securing 285 MW of power to support high-performance computing, according to

. Likewise, NIP Group has ramped up its mining operations to achieve a hash rate of 11.3 EH/s, targeting a monthly output of 160 BTC and exploring new opportunities in gaming and AI, as reported by IndexBox. These moves highlight the industry’s recognition of AI’s energy needs and the potential to leverage existing infrastructure for new revenue streams.

Canaan has also been working to strengthen its competitive edge. The company recently introduced its Avalon A16 mining rigs, which it claims offer top-tier efficiency, and secured a substantial order for 50,000 Avalon A15 Pro units, according to The Block. Additionally, Canaan has agreed to supply mining equipment to a Japanese utility for grid-stability research, marking the country’s first government-backed mining project, as separately reported by The Block.

This funding round follows Canaan’s decision to suspend its at-the-market (ATM) equity offering for 2025, citing a “robust” cash position supported by a cryptocurrency reserve of 1,582

and 2,830 ETH, as reported by . The company will reconsider resuming the offering in 2026, depending on market dynamics and liquidity needs, Investing.com added.

Analysts observe that this transaction highlights a strategic shift among Bitcoin miners to attract more institutional funding. CleanSpark’s CEO, for instance, has stated that while Bitcoin remains central to their business, AI data centers are “driving the next wave of digital transformation,” as previously reported by The Outpost. Similarly, NIP Group’s Chahine described Bitcoin mining as a foundation for investing in AI and gaming, according to IndexBox.

As the industry continues to evolve, Canaan’s ability to manage its mining business while maintaining financial discipline will be key. With new partnerships, product launches, and the recent $72 million investment, the company is positioning itself to thrive in a market increasingly focused on energy efficiency and diversified income sources.