Canaan Inc. (CAN) Announces Strategic Realignment

Canaan Inc. (NASDAQ: CAN) ("Canaan" or the "Company"), an innovator in crypto mining, today announced that it has commenced a strategic realignment aimed at sharpening its focus on its core businesses of bitcoin mining machine sales, self-mining operations, and consumer mining products. As part of this initiative, the Company will discontinue its non-core AI semiconductor business unit, described in the annual report for the year ended December 31, 2024 as "ASICs for edge computing applications", with the process expected to conclude in the coming months.

This decision reflects the Company's commitment to streamlining operations, enhancing capital efficiency, and reducing expenditures unrelated to its primary business lines. By discontinuing the AI semiconductor business unit, Canaan will reallocate resources and leadership attention toward its foundational strengths in the rapidly evolving digital asset ecosystem. While the AI semiconductor business unit brought promising innovations, it did not align with the Company's streamlined growth strategy.

In fiscal year 2024, the Company's revenue from the sale of edge computing products was approximately US$0.9 million. Unaudited operating expenses related to this business accounted for around 15% of the Company's total operating expenses for fiscal year 2024.

Beginning as early as March 2022, the Company has engaged external advisors, sought independent third-party valuation, and actively explored its strategic options for its AI semiconductor business, including partial or complete asset sales or orderly wind-downs of related operations. After the AI semiconductor business unit is fully discontinued, the Company expects its operating expenses to decline significantly.

"As we navigate a dynamic and rapidly evolving market environment, I believe that doubling down on our core strengths in crypto infrastructure and bitcoin mining is the most strategic path forward for Canaan," said Nangeng Zhang, chairman and chief executive officer of Canaan Inc. "By focusing our resources and talent on the areas where we have deep expertise and competitive advantage, we aim to drive sustainable growth, unlock long-term shareholder value, and continue playing a central role in the global crypto ecosystem. This realignment will not only enable us to accelerate innovation in our next-generation mining hardware and infrastructure solutions, but also will strengthen our ability to serve customers worldwide and reinforce our leadership in a critical and foundational layer of the digital asset economy."

The Company remains committed to delivering cutting-edge ASIC solutions for crypto infrastructure, expanding its mining footprint, and strengthening its position in the global cryptocurrency infrastructure market.

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