Canaan Inc. (CAN), the Singapore-based manufacturer of Bitcoin mining machines, will run its artificial intelligence (AI) Semi-Leading business to focus on its core crypto surgery.
Despite the growing trend for Bitcoin miner workers who diversify their revenue through AI-related companies, it is probably very competitive to build AI chips very competitive and not cost-effective for smaller businesses.
Canaan said its AI unit, which brought approx. $ 900,000 in revenue in 2024 (versus a total revenue of $ 269.3 million) and accounted for 15% of the company’s operating expenses, failed to adapt to the company’s long -term strategy, the company said on Monday.
“Doubling our core forces in cryptoInfrastructure and Bitcoin mining is the most strategic way forward,” CEO Nangeng Zhang said in the statement.
Before the move, the company said it began to explore opportunities for the AI unit as far back as in March 2022, including selling it or shutting it down completely. Now Canaan expects to end the outcome in the coming months and expect a sharp decrease in costs when the exit is completed.
Canaan is best known for its Avalon Mining Rigs, one of the earliest brands of ASIC (application -specific integrated circuit) miners built for Bitcoin. The company was published at Nasdaq in 2019 and continues to develop mining hardware, while also expanding for self -mining and consumer mining.
The decision, which comes after many years of attempting to diversify to Edge Computing Chips, is hardly a surprise considering the recent focus of miners and mining of chip producers at “American Made” Bitcoin after Trump’s US election gain.
Recently, Benchmark’s Mark Palmer wrote in his research that Rig Maker’s shares do not reflect upward potential from the expansion of the company’s self -mining, especially in the United States.
Canaan’s shares were a bit down on Monday, while the wider digital assets and stock markets were mostly positive. The share fell 71% this year, while a Bitcoin Mining Etf, WGMI, fell approx. 20%.
Correction (June 23, 17:17 UTC): Corrects 2024 total turnover number for $ 269.3 million.
