Canaan introduced its latest innovation, the A1566 mining rig, at Bitcoin Asia 2024, marking a significant advancement in energy efficiency within the cryptocurrency mining industry. As reported by the South China Morning Post, this new model is part of Canaan’s esteemed Avalon A15 series.

The A1566 is engineered specifically to address the challenges posed by the reduced rewards following Bitcoin’s recent halving event, offering miners a more sustainable solution to maintain profitability in a dynamically shifting blockchain landscape.

Canaan Launches Advanced Mining Rig Amidst Bitcoin Halving’s Challenge to Industry Efficiency

Following the recent Bitcoin halving, prominent public mining companies like Bitfarms, Cipher, CleanSpark, Core Scientific, Riot, and Terawulf reported a decrease in Bitcoin production ranging from 6% to 12% in April, as noted by Miner Mag. The halving event, which reduces the reward for mining Bitcoin transactions, significantly impacted these companies’ operational efficiency.

In a stark revelation, Hut 8, another leader in North American Bitcoin mining, disclosed in their latest monthly update a substantial 36% drop in their Bitcoin mining yield. They managed to mine only 148 BTC in April, a sharp decline from the previous month.

• April Bitcoin production: Hut 8 mined only 148 BTC, down 36%.
• Industry-wide impact: Similar declines reported by other major mining firms.

David Hui, the Vice President of Canaan, commented on the situation, “The halving of Bitcoin presents both a challenge and an opportunity.” He highlighted the strategic launch of Canaan’s new mining machines, designed to assist miners in navigating the reduced rewards post-halving. This move is seen as a vital support mechanism for sustaining miner profitability during these challenging times.

Canaan’s financial performance last year mirrored these industry challenges. The company witnessed a significant 67.5% drop in total revenue, amounting to $211.5 million, and a 71.5% fall in mining equipment sales, which stood at $175.9 million. These declines were attributed to lower equipment prices and diminished market demand, as outlined in their financial statement.

Hong Kong Debuts First Spot Bitcoin and Ethereum ETFs, Leading with Strong Market Uptake

Nangeng Zhang, CEO and chairman of Canaan, acknowledged the persisting challenges faced by the mining machines market, but drew inspiration from the recent approval and listing of spot Bitcoin ETFs.

The Hong Kong Exchanges and Clearing Limited (HKEX) debuted spot Bitcoin and Ethereum exchange-traded funds (ETFs) on April 30, marking the first of their kind in the Asian market. According to data from the Hong Kong Stock Exchange, the $273 million AUM of virtual asset spot ETFs outperformed the $152 million AUM of virtual asset futures ETFs by approximately 80%.