We had a chance to talk with Davis Hui, Vice President of Canaan. With a storied history dating back to 2013, Canaan has consistently pushed the boundaries of high-performance computing and crypto mining. In our discussion today, we’ll explore the company’s latest breakthrough—the Avalon Miner A1566 of the Avalon Miner A15 series, which debuted at the Bitcoin Asia exhibition in Hong Kong on May 9, 2024. This advanced mining machine boasts an impressive 185Thash/s of computing power and a remarkable energy efficiency ratio of 18.5J/T, setting a new industry standard for dependable and efficient Bitcoin mining. We’ll also delve into the company’s broader impact on the industry, its commitment to sustainability, and how it’s adapting to evolving global regulations. So, check it out!
Canaan Inc. has been revolutionising the mining industry with its solutions since 2013. Could you elaborate on the company’s journey and the impact it has had on shaping the landscape of Bitcoin mining technology?
In the past eleven years, we have achieved a lot of the first things. First, our founder, chairman, and CEO, Mr. Nangeng Zhang, has developed the world’s first ASIC mining machine. Before that, most of the miners used the GPU card and ran on the Legacy OS, such as Linux or Windows, for Bitcoin mining. This is why Mr. Nangeng Zhang has built this ASIC machine for them. Most Bitcoin miners have switched to using this ASIC mining machine because it’s easier to manage, more powerful, and more efficient. We have changed the game in this industry, especially with the launch of our latest product — Avalon Miner A1566.
Secondly, we are also the first blockchain company listed on NASDAQ. Our headquarters are located in Singapore. We also have some R&D in the United States, and we fully comply with all the rules and regulations.
How do you operate in such economically different regions (U.S. and Asia)? What issues do you face?
Most of the rules and regulations for Bitcoin miners in this industry are “workable.” Workable means that the rules we apply to the U.S. most likely can be applicable to Singapore. As a mining rig manufacturer, we will focus on following rules and regulations in different countries and regions. It really depends on which country can provide a suitable energy cost for us. To sum up, we are based on the rules and regulations that guide the design of our business model in different countries.
Does such an environmentally oriented country as Singapore allow crypto mining?
Yes, it’s allowed in Singapore. The major concern in this country is the electricity and energy costs. In Singapore, the energy cost is not cheap, and I can even notice that it’s quite expensive. This is why most Bitcoin miners set up their mining farms in other countries and regions, and electricity cost is a major concern.
But what should we do if we want to overcome this problem? We will operate in other countries where they will have fully compliant Bitcoin mining and where they can also provide reasonable energy to Canaan and our customers.
North America is one of the perfect choices because, no matter whether in Canada or America, the laws and regulations are obvious, allowing Bitcoin miners to operate there. Energy may not be the cheapest one in the world, but it’s also not very expensive. This is why most Bitcoin mining companies also have a facility in the US, especially in Texas.
How do you see the industry right now? Has the crypto market changed since the foundation of your company?
After the launch of Bitcoin spot ETFs, you can see that more and more traditional financial institutes would like to join Bitcoin mining. So right now, we have more and more customers purchasing our mining machines and starting their Bitcoin mining.
Maybe you have a question: “Why would they like to do mining rather than purchase the Bitcoin ETFs or the Bitcoin from the market?” These are two different models: while purchasing Bitcoin, you just buy and sell. This is just trading. However, for Bitcoin mining, you need to have the necessary facilities, energy, and infrastructure. You need to have your Bitcoin mining machine, such as our Avalon Miners, and pool. It’s not an easy job and a little bit complicated.
But why do people prefer Bitcoin mining? It has two primary reasons. First, Bitcoin mining makes it very easy to calculate the profit. So once the Bitcoin price and electricity and the Bitcoin reward can cover the energy cost, and when the soft ROI is good, then it’s a very successful business model. The second point is the reward, which is the first hand of Bitcoin. That’s why a lot of the traditional financial industry prefers using mining to get the Bitcoin reward rather than purchasing from the market.
Have you witnessed any positive or negative changes after the Bitcoin halving?
Miners rely on the energy or power to overcome the reward cut down after the fourth Bitcoin halving to mine the same amount of Bitcoin. For this exact reason, they will use more powerful mining machines, such as our new Avalon Miner A1566. Or maybe double the hash rate, and then they can overcome the 4th Bitcoin halving.
As a manufacturer of Bitcoin mining rigs, Canaan’s revenue increases when our customers adopt more powerful mining rigs. This is also the reason why we launched our Avalon Miner A1566 on May 9. It’s one of the most powerful mining machines in the world. Its introduction comes at an opportune moment. We encourage our customers, the miners, to invest in the Avalon Miner A1566 to maximise their profits.
Have you ever faced regulatory hurdles while operating in different regions?
Governments worldwide maintain diverse positions, regulatory mindsets, and policies concerning Bitcoin business and mining activities. As a company listed on NASDAQ, Canaan places compliance as its paramount priority and guiding principle. Canaan abides by the applicable laws and regulations of Bitcoin mining in the countries where such legislation is enforced.
We observed that in the countries and regions where explicit regulatory rules and legislation for the Bitcoin mining business are still scarce, amid making policies on how to regulate the mining industry, favour the local market & economy, ensure securities of cryptocurrency and the sustainable development of the society are the main concerns of the governmental policymakers. The industry contends with challenges stemming from policy uncertainty and unpredictability.
To navigate these complexities, Canaan has established communication channels with the policymakers and regulators in the countries and regions where mining laws have been enacted or are under consideration. We provide comprehensive insights into the Bitcoin mining business and technologies, addressing key issues and dispelling potential misconceptions. Furthermore, we keep policymakers abreast of the global regulatory landscape concerning Bitcoin business and mining activities.
We encourage policymakers to adopt regulatory tools to standardise industry practices and ensure its robust and prosperous development. Canaan emphasises the importance of policy consistency and legislation.
How do Canaan’s machines solve the environmental impact of crypto mining?
We can start with reusable energy since last year. More than half of the Bitcoin mining energy is using renewable energy. So, we are using the ESG or another energy methodology to overcome the environmental impact. I would also mention the KPMG report, which talks about the role of Bitcoin mining in the ESG imperative. This report highlights several strategies that are very good to take as a reference.
First, renewable energy, as I mentioned. Second, they also found out that Bitcoin mining can balance or respond to the grid requirements. What is that? The grid needs to provide very stable energy support, but some renewable energy sources have become saturated (such as solar energy). On sunny days, they will have a pit that causes surplus energy or waste energy. This waste of energy may damage the natural grid.
Bitcoin miners or mining machines can use this waste energy to slow down and balance the grid energy. This will respond to the grid requirements. In other words, if the grid energy is low, the utilisation is very low.
Our machines can overclock. Overclocking means that we can use a more high-end power mode. Consuming more power can first maximise the miners’ income and can also use this energy.
The third point is the CH4 reduction. A lot of the areas will have CH4 emission problems, and CH4 will damage the greenhouse effect. Miners can also use the CH4 to generate power for Bitcoin mining. That can provide a cheaper energy cost and also can protect the environment.
The Avalon Miner A1566 was launched on May 9. Can you tell us more about the specifics? What’s the difference between it and previous versions? What was the audience reaction?
Yes, on May 9, we had a presentation at the Bitcoin Asia 2024 in Hong Kong to launch our Avalon Miner A1566 from the Avalon Miner A15 series. I think that more than 300 or so people listened to our speech. They were very excited when we launched A1566.
Because of two parts, this is one of the most powerful Bitcoin miners in the world. We have a niche in technology, and that’s why we’re using this technology to help our customers enable their mining business as much as possible and maximise their profit as much as possible. These are the two major important things.
As for the Avalon Miner A1566, we can provide a maximum of 185 Thash/s, which is the top number in the market. We also provide power efficiency up to 18.5 J/T. That’s why our machine, Avalon Miner A1566, compared to the Avalon Miner A14 series, is more powerful and, at the same time, power consumption is less. This means that by using Avalon Miner A1566, miners can get more rewards and maximise their profit.
What advantages of Canaan can you highlight if we compare you to the competitors?
As I mentioned, the world’s first ASIC mining machine was built by Canaan. We are the most experienced company in the Bitcoin mining business. Actually, of the top three mining companies, only Canaan is listed on NASDAQ.
The new Avalon Miner A1566 is a good example of Canaan’s intensified efforts in product development, market research, and collaboration with key partners to deliver high-quality, resilient Bitcoin mining solutions, especially crucial after the fourth halving of Bitcoin.
Canaan collaborates closely with semiconductor foundries to develop cutting-edge technologies for the latest chip design and manufacturing processes. We continually strive to develop products with high efficiency and reliability to meet the evolving demand for Bitcoin mining. This endeavour not only enables our customers to enhance their profitability after the fourth halving of Bitcoin but also bolsters their resilience against risks. It also underscores Canaan’s sustained, coherent, and profound capabilities in chip and product research and development.
Furthermore, Canaan follows the rules of regulation and law, has a full commercial audit, and provides support to customers worldwide. We care about our customers, and that’s why we have set up over 20 data and service centres all over the world. We did it to provide a faster response to our customers. We can also set up a dedicated team for our VIP customers, provide them with specific support, and fulfil their requirements.
What do you think is the major issue in the crypto-mining industry right now?
I think that in today’s market, the major problem is energy. The world is missing energy not only because it’s needed for Bitcoin mining but also because it’s applicable to AI data centres. AI is really hot now. A lot of the IT giants have built up their AI data centres, so they will also consume a lot of energy.
So, helping the miners find a reasonable price for energy is one of the major jobs that we are doing right now. We have 2.2 GWs of energy right now. Once our customers are willing to use it, they can purchase our Avalon Box containers and our mining machine, Avalon Miners, and start their Bitcoin mining journey. That’s why Canaan will not only provide the equipment but also provide one-stop mining solutions for the miners to enable their business and solve their problems right now.
With the development of Avalon Miner A1566, more new products are probably on the way. Can you please tell us more about the company’s plans and future goals?
I think that as a technology company, we definitely need to enhance our technology. So, we are using our cutting-edge technology and our very advanced in-house design to provide more powerful and better PE ratios for the miners. The point is that we need to maximise their profit. This is one of the goals we are reaching right now. It’s quite common in this industry that mining rig manufacturers launch one or two series of new products on a yearly basis. In the near future, we will launch New Avalon Miners again. So stay tuned for the upcoming updates!
As the bullish market is coming soon, we are pretty sure that it will also influence the blockchain market. What can you predict for this industry in the next few years?
We can use historical data to predict the influence of Bitcoin’s halving and the bull market. The four Bitcoin halvings occurred in 2012, 2016, 2020 and 2024. The halvings are designed to keep the supply of Bitcoin limited. The lowering of Bitcoin’s supply probably will drive demand for Bitcoin and its price. According to an analysis by Forbes, Bitcoin rose 8,069% in the 12 months after the 2012 halving, 284% following the 2016 halving, and 559% after the 2020 halving. We are optimistic about the fourth Bitcoin halving as long as the demand for Bitcoin exists.
In case there is a very big bull market. Miners definitely will be more interested in purchasing more powerful mining machines to maximise their profits. If the Bitcoin price increases, the volume can also increase. That’s why we have more and more technical resources that can be applied for R&D, and more new Avalon Miners will be coming out. In the next few years, Canaan will persist in its dedication to ASIC Bitcoin miner development and innovation. We remain committed to addressing the evolving needs of miners by providing superior services while contributing to the advancement of the cryptocurrency industry.
The post Canaan’s Avalon Miner A1566 Brings Innovation to Bitcoin Mining with 185 Thash/s and 18.5J/T Efficiency While Navigating a Post-Halving Era appeared first on Metaverse Post.
