June 17, 2024

Canaan may abandon the production of mining equipment in the future

Canaan may abandon the production of mining equipment in the future

Last month, cryptocurrency mining maker Canaan became among the first cryptocurrencycompanies that have entered public markets.In a recent podcast with The Scoop, Iterative Capital Management director Leo Jean acknowledged the company's IPO as a "big milestone" for the industry as a whole, but noted that Canaan's influence in the crypto industry may eventually wane.

Jean noted that although mining is one of thetwo main business areas, the firm is focused not on developing crypto solutions, but on creating AI chips. As the company lags behind Bitmain and Whatsminer, Canaan's influence may only weaken over time.

According to the IPO filing, Canaan is nowcontrols about 23% of the global mining market. It raised $90 million in an IPO in November, reducing its initial fundraising goal to $400 million by 77.5%.

At this point, I think the US tech stock market is just as inflated as the cryptocurrency market. In terms of sentiment rather than quantity, – Jean explains the situation of falling shares on the market.

Meanwhile, Bitmain is strengthening its strategysales worldwide, in an effort to strengthen its market dominance. The company is reportedly currently seeking joint mining opportunities with mining rigs, as well as providing put options to customers to sell pre-ordered equipment at a price set at the time of the transaction.