Key Highlights
- Canaan mined 89 BTC during July 2025.
- The company withdrew from Kazakhstan and terminated a hosting agreement in Texas.
- Redeployment of mining equipment and strategic adjustments underway.
Canaan Inc., a major player in crypto mining listed on NASDAQ, has released its mining update for July 2025, showing continued progress. The company mined 89 bitcoins last month, bringing its total holdings to a substantial 1,511 BTC. This aligns with Canaan’s long-term strategy focused on accumulating a significant bitcoin reserve to bolster its competitive standing in the mining sector.
Hashrate Declines Following Kazakhstan and Texas Withdrawals
Although Canaan produced 89 BTC in July, slightly surpassing June’s 88, its mining capacity experienced a modest reduction. The operational hashrate fell to 6.24 EH/s from 6.57 EH/s in June, noticeably below the deployed capacity of 7.95 EH/s. This decrease is attributed to the company’s recent exit from Kazakhstan due to evolving business conditions and the termination of an underperforming hosting agreement in South Texas. These decisions caused some mining rigs to be temporarily offline but are intended to pave the way for more streamlined and efficient operations moving forward.
According to Canaan’s leadership, approximately half of the offline mining rigs are expected to resume activity by August after being redeployed. The company is relocating equipment to optimize efficiency and reduce electricity costs, achieving an average all-in power expense of $0.042 per kWh in July, which is competitive within the mining industry.
North America Becomes a Key Focus for Mining Activities
Canaan’s withdrawal from Kazakhstan is part of a broader strategy to concentrate mining efforts in regions offering lower costs and higher efficiency. The company has been expanding its footprint in North America, where mining hardware operates more effectively and power supply is more reliable. Energy efficiency in North American operations averages around 20.1 J/TH, compared to 29.7 J/TH in other areas, providing Canaan with a distinct cost advantage.
The company also reaffirmed its commitment to retaining mined bitcoins as part of a long-term BTC reserve plan. Currently, Canaan holds approximately 1,511 BTC, which includes coins recorded on the balance sheet and receivables but excludes any customer deposits. This conservative approach affords the company greater financial flexibility and the potential to capitalize on future BTC price appreciation.
Avalon Mining Hardware Secures Significant Client Orders
Canaan’s Avalon series mining machines are recognized for their reliability, durability, and efficiency. To support its growth, the company recently secured hardware supply agreements with prominent miners such as Cipher Mining and CleanSpark.
In the third quarter of 2025, Canaan will deliver 6,840 Avalon A15 Pro miners to Cipher Mining’s Black Pearl site, reflecting continued confidence in its technology and manufacturing capabilities. Additionally, Canaan is optimizing its operations by adjusting locations and reducing costs through new hosting and power agreements. The termination of the South Texas hosting contract aligns with a strategy to focus on sites offering better economics and more consistent performance, which is expected to enhance uptime and productivity in the near future.
By refining its operational footprint and negotiating smarter hosting and power deals, Canaan aims to maximize profitability and maintain steady mining output in the months ahead.
Fundfa Analysis
Canaan’s strategic redeployment and focus on energy-efficient regions like North America highlight the importance of operational optimization in crypto mining. This approach not only reduces costs but also positions the company to sustain competitive production levels, influencing market dynamics and investor confidence in the mining sector.