Canaan Inc. (CAN), the manufacturer of Bitcoin mining machines based in Singapore, reduced its business of artificial intelligence semiconductors (AI) to renounce itself in its central cryptographic operations.
Despite the growing tendency of Bitcoin miners that diversify their income through AI -related companies, the construction of AI chips is probably very competitive and is not profitable for smaller companies.
Canaan said that his AI unit, which contributed approximately $ 900,000 in income in 2024 (versus total income of $ 269.3 million) and represented 15% of the operational expenses of the entire company, did not align with the company’s long -term strategy, the company said on Monday.
“Duplicating our central strengths in cryptographic infrastructure and Bitcoin mining is the most strategic way forward,” said Nangeng Zhang CEO in the statement.
Before the move, the company said it began to explore options for the AI unit since March 2022, including the sale or off completely. Now, Canaan hopes to complete the gradual elimination in the coming months and anticipates a sharp drop in costs once the exit is finished.
Canaan is better known for its Avalon mining platforms, one of the first brands of ASIC miners (specific integrated circuit) built for Bitcoin. The firm was made public in Nasdaq in 2019 and continues to develop mining hardware, while expanding to self -minization and consumption products.
The decision, which occurs after years of trying to diversify in edge computer chips, is not a surprise given the recent approach of miners and manufacturers of mining chips in Bitcoin “American” after Trump’s electoral victory in the United States.
Recently, Mark Palmer from Benchmark wrote in his investigation that Rig Maker’s actions do not reflect the upward potential of the expansion of the company’s self -registration operations, especially in the United States.
Canaan’s shares were slightly low on Monday, while broader digital asset markets and digital actions were mostly positive. The action fell 71% this year, while a Bitcoin mining ETF, WGMI, decreased around 20%.
Correction (June 23, 17:17 UTC): Correct 2024 total income number at $ 269.3 million.
