Bitcoin mining company Canaan has entered into a joint mining agreement with Texas-based crypto miner Luna Squares as part of its strategy to achieve a mining capacity of 10 exahashes per second (EH/s) by mid-2025.
According to a November 20 press release, the partnership will focus on revenue-sharing from Bitcoin mining using Canaan’s Avalon machines, particularly the A14 and A15 series. For Avalon A14 Series miners, revenue will be evenly split at 50% each. However, for Avalon A15 Series miners, Canaan will initially retain 70% of the revenue to offset capital expenses before transitioning to a 50/50 split.
Canaan’s Chairman and CEO, Nangeng Zhang, highlighted the importance of the collaboration, stating it would “foster mutually beneficial relationships and contribute to industry stability.”
Luna Squares’s Willow Wells site in Texas will play a key role in the partnership. The facility will host 3,480 Avalon A14 machines and 5,664 Avalon A15 machines and deliver approximately 1.62 EH/s of total computing power once fully operational. The site is expected to be fully operational by the end of Q1 2025.
Jeff Xu, COO of LS Texas, expressed optimism about the partnership, noting, “This joint mining program offers significant Bitcoin upside compared to our previous flat-fee model. Testing of the Avalon A1466 and A1566 models showcased impressive efficiency and consistency.”
He also highlighted the competitive advantage of Luna Squares’ West Texas sites, which benefit from an average power cost of $40/MWh and a 96% uptime commitment.
Earlier this year, Canaan secured over $50 million in funding through the sale of 125,000 Series A convertible preferred shares to an undisclosed institutional investor. The Nasdaq-listed company plans to use the net proceeds to enhance its research and development efforts, scale up production, and cover general corporate expenses. This funding will support Canaan’s growth strategy as it continues to expand its operations and improve its technology offerings.
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