Crypto company Canaan has partnered with a Bitcoin mining firm in West Texas to enhance its operations in the state, expanding its presence in North America.
Canaan, a Bitcoin mining company, has signed a joint mining agreement with Luna Squares Texas, a Texas-based crypto mining firm, as part of Canaan’s goal to achieve a capacity of 10 EH/s by mid-2025.
According to Canaan’s press release on November 20, both companies will share the Bitcoin revenue generated from Canaan’s Avalon mining machines. The revenue split will vary depending on the model, with each company receiving 50% for Avalon A14 Series machines and Canaan initially receiving 70% for Avalon A15 Series machines to cover capital costs, before returning to a 50% split for both parties.
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Nangeng Zhang, Canaan’s chairman and chief executive, emphasized the company’s expansion in North America, stating that the collaboration will strengthen relationships and contribute to industry stability.
As part of the partnership, the Willow Wells site, managed by LS Texas’ team, is set to be operational by the first quarter of 2025. It will host a combination of 3,480 Avalon A14 and 5,664 Avalon A15 machines, providing approximately 1.62 EH/s of computing power once fully operational. Following the announcement of the collaboration, Canaan’s shares saw a 3.77% increase in pre-market trading, as reported by Nasdaq data.
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