Canaan to Wind Down AI Chip Business and Focus on Bitcoin Mining
Canaan Inc. (CAN) will discontinue its AI semiconductor business to concentrate on its bitcoin mining operations. Key points include:
- The AI unit generated approximately $900,000 in revenue for 2024, constituting 15% of operating expenses.
- Total revenue for Canaan in the same period was $88.8 million.
- CEO Nangeng Zhang stated focusing on crypto infrastructure and bitcoin mining aligns with the company's long-term strategy.
- Canaan plans to finalize the phase-out of the AI unit in the coming months, expecting a significant reduction in costs.
- The company is known for its Avalon mining rigs and has been publicly traded on Nasdaq since 2019.
- Canaan's shares fell 71% this year, despite a generally positive trend in digital assets and equities markets.