ASIC maker Canaan's stock surges 40% after signing order with HIVE Digital for Avalon A1566 miners

Canaan Creative Global Pte., a wholly owned Singapore subsidiary of Canaan, has entered into a purchase agreement with HIVE Digital for its Avalon A1566 miners.

CCG will provide HIVE with 6,500 Avalon A1566 miners, with an average computing power of 185 terahashes per second (TH/s). Of the 6,500 A1566 miners, 500 were immediately delivered and are scheduled for installation. The remaining 6,000 machines will be delivered in four monthly shipments of 1,500 units from December through March 2025. Terms of the deal were not disclosed.

Canaan, founded in 2013, focuses on ASIC high-performance computing chip design, chip research and development, and software services. In 2013, Canaan's team shipped to its customers the world's first batch of mining machines incorporating ASIC technology in bitcoin's history under the brand name Avalon, according to a press release.

The Avalon Miner A1566 is a second-generation series designed to provide a more dependable mining experience.

Canaan's NASDAQ-traded stock (ticker: CAN) was up 38% to $1.74 in Monday morning trading. The company has a market cap of $499 million, and its share price is down 80% since going public in November 2019, according to Yahoo Finance.

Separately, HIVE Digital said construction has begun on its 100 MW expansion in Paraguay and is projected to be fully operational by the third quarter of 2025, achieving a targeted hashrate of 12.5 EH/s with a fleet efficiency of 17.6 J/TH.

"Our disciplined capital management allows us to seize opportunities for ASIC upgrades, boosting efficiency and adding accretive value while building our Bitcoin HODL," said HIVE Executive Chairman Frank Holmes. "With construction underway for our 100 MW green energy facility in Paraguay, we are using cash flow from operations to drive growth and capitalize on our position as both a Bitcoin proxy and an operational business."

HIVE Digital's stock (HIVE) was up 17% to $5.44 at publication time.