Canaan Inc. (Nasdaq: CAN)’s core achievements mainly include entering the Bitcoin ASIC mining machine market early, becoming an industry pioneer, going public in the U.S. in 2019 as the “world’s first blockchain stock,” and expanding into RISC-V AI chip business.
Its path was not accidental. It seized the window of opportunity as Bitcoin mining shifted from general-purpose hardware to application-specific chips, then built on technical accumulation and capital operations. The following breaks down how it did so from key milestones.
1. Early precise positioning: the industry transition window from FPGA to ASIC
In 2013, Zhang Nangeng and others founded Canaan (initially focusing on developing FPGA products based primarily on the SHA-256 algorithm). At that time, Bitcoin mining was still dominated by GPUs and FPGAs, with relatively high power efficiency and cost.
Canaan quickly pivoted to ASIC-dedicated chips and launched the world’s first ASIC-based blockchain computing equipment (the precursor to the Avalon series). This directly pushed the industry into the ASIC era, greatly improving mining efficiency and making large-scale operations more feasible.
Its advantage lies in that the team accumulated ASIC design capabilities, process understanding, and experience in production and commercialization. In 2016, it achieved mass production of 16nm chips and obtained recognition as a national high-tech enterprise. This enabled it to establish a foothold against competitors such as Bitmain and become one of the major Bitcoin mining machine manufacturers globally.
In the early stage, it rapidly built up capital, talent, and supply-chain resources during bull markets through selling mining machines, laying the foundation for later development.
2. Continuous technological iteration and dual-wheel drive of “blockchain + AI”
Main mining-machine business: it continues to push advanced process nodes (including an early breakthrough in 7nm mass production) and improve energy efficiency. Subsequent products such as the A-series mining machines focus on the J/TH energy-efficiency ratio to help customers maintain competitiveness amid coin-price fluctuations. The company has also built its own mining operations to accumulate real operational data, while expanding computing-power deployment through joint mining projects (by 2026 data, the scale at the EH/s level and BTC output are visible).
AI chip expansion: it began investing in AI R&D in 2016. In 2018, it achieved two major breakthroughs—mass production of the world’s first self-developed 7nm chips, and commercial edge AI chips based on the RISC-V architecture (the Kendryte K210 series and subsequent K230, K510, etc.). These chips emphasize low power consumption, high energy efficiency, integrated audio-visual functionality, and an open ecosystem. They are used in smart home and embedded scenarios, among others.
Strategic logic: the mining-machine business provides cash flow and ASIC experience, while the AI business attempts to reduce dependence on the crypto cycle and build a one-stop solution from chips to computing power. The company highlights an open-source culture (RISC-V itself is open source), creating differentiation from closed ecosystems.
3. Capital operations: Nasdaq listing in 2019
In November 2019, Canaan listed on Nasdaq under the identity of the “world’s first blockchain stock” (ticker CAN). The offering price was about $9, raising roughly $90 million. At the same time, it was positioned as China’s first AI chip company with independent intellectual property rights to complete an IPO on U.S. stock markets.
Before going public, it had already accumulated substantial revenue (the prospectus shows a significant surge in 2018 revenue). It also proactively avoided cryptocurrency speculation, focusing on technology and products to reduce compliance and public-opinion risks.
After going public, it further internationalized by setting up overseas production/assembly (Malaysia, South Asia, North America, etc.) and operating its own mining (mainly outside China) to address geopolitical and tariff risks. In recent years, it has also strengthened its resilience to the cycle by acquiring energy projects, computing-power infrastructure, and maintaining BTC/ETH treasuries.
4. Ongoing challenges and response approach
The industry has a clear strong cyclicality: when coin prices are high, mining-machine orders surge; when they are low, sales face pressure and gross margins decline. In 2025–2026, the company saw revenue fluctuations, expanded losses, and downward pressure on its stock price (it has faced Nasdaq’s minimum-price compliance warnings multiple times, requiring operational improvements or measures such as reverse stock splits). The responses include:
Increase self-operated mining and joint projects to accumulate reserves of crypto assets.
Advance more energy-efficient products (such as the A16 series) and an energy strategy (areas with low electricity prices, redirecting stranded natural gas to computing power, etc.).
Diversification of the supply chain and securing orders from North American major customers.
Continuous R&D investment to maintain patents and technological barriers.
Core success factors
Canaan’s path can be summarized as: first-mover advantage in a window period (ASIC replacing general-purpose hardware) → deep technological focus and mass-production capability → mining-machine cash cow supporting an AI transition → capitalizing on a compliance-focused technology strategy. It is not always the leader across every cycle (with Bitmain and others being long-term major competitors), but at key milestones (first ASIC equipment, 7nm and RISC-V commercial edge AI, Nasdaq listing) it achieved “first” or was among the front-runners—and it has made it through to the present.
At its core, the industry is still highly tied to Bitcoin prices, the computing-power race, and energy costs. Canaan is now more like a “technology mining-machine company plus an AI chip company within a cycle,” rather than a purely growth story.