Canaan rises 4% after securing Bitcoin mining partnership with Luna Squares Texas

Crypto firm Canaan has teamed up with a West Texas Bitcoin mining firm to expand its operations in Texas and expand its footprint in North America.

Bitcoin (BTC) miner Canaan has signed a joint mining agreement with Luna Squares Texas, a Texas-based crypto mining company, as part of Canaan’s goal to reach 10 EH/s capacity by mid-2025.

Under the terms, both companies will share Bitcoin revenue from Canaan’s Avalon mining machines, with revenue sharing dependent on the model, Canaan said in a Nov. 20 press release. For Avalon A14 Series machines, each company will receive 50%, for Avalon A15 Series machines, Canaan will initially receive 70% of the revenue to cover capital costs, then the split will revert to 50% for each party.

Nangeng Zhang, Canaan’s president and chief executive, said the collaboration “will foster mutually beneficial relationships and contribute to industry stability,” noting the firm’s continued expansion in North America.

As part of the collaboration, the Willow Wells facility, managed by LS Texas personnel and expected to be energized in the first quarter of 2025, will house a combination of 3,480 Avalon A14 and 5,664 Avalon A15 machines providing approximately 1.62 EH. /s of computing power when fully operational. Following the collaboration announcement, Canaan shares rose 3.77% in pre-market trading, according to Nasdaq data.