Canaan Raises $50M in Third Tranche of Preferred Stock Offering
Canaan has raised $125 million in total since November via preferred stock offerings
Share This Post:
Chinese bitcoin mining hardware manufacturer Canaan has completed the third tranche of its preferred stock offering, raising an additional $50 million to expand its proprietary mining operations in the U.S.
On Monday, Canaan announced the issuance of 50,000 Class A preferred stocks at $1,000 per share. These shares are convertible into Class A ordinary shares after six months, which can subsequently be converted to american depository shares (ADSs) on Nasdaq.
This offering is the third tranche of a securities purchase agreement that Canaan signed with an unnamed institutional investor in November 2023, aiming to raise up to $125 million in three phases. Canaan raised $25 million in the first tranche and $50 million in the second tranche in December and February, respectively.
Canaan stated that the proceeds from this third tranche will be used to fund its proprietary mining expansion and miner manufacturing business in North America.
“By expanding our North American self-mining activities, we expect to benefit from a more diversified revenue stream, reduced volatility, and a stable regulatory environment,” said Nangeng Zhang, chairman and chief executive officer of Canaan.
The company also amended the securities agreement with the investor to clarify the mechanism by which the preferred shares can be converted and sold.
Share This Post: