<<Deep Dive>> How to Interpret Canaan Inc. (CAN)'s $72 Million Strategic Investment?

On November 4, 2025, crypto mining giant Canaan Inc. (NASDAQ: CAN) announced that it had completed a strategic capital raise totaling $72 million USD from a group of major institutional investors.

The main investors participating were BH Digital (a division of the prominent hedge fund Brevan Howard), Galaxy Digital, and Weiss Asset Management.

This fundraising was conducted through a "Registered Direct Offering" and was executed as a clean equity transaction without warrants or options. Canaan will issue approximately 63.7 million ADSs at a price of $1.131 USD per ADS.

■ Use of Proceeds and Strategic Significance

Canaan plans to invest the raised funds primarily into high-return "computing and energy infrastructure projects." This is aimed at maximizing asset efficiency and ensuring long-term revenue visibility, supporting the company's sustainable growth strategy in its mining business.

Canaan's management commented, "This transaction demonstrates strong confidence from top-tier institutional investors in our technical capabilities and long-term strategy, marking a significant milestone in our capital market strategy."

■ What kind of companies are the three investors?

BH Digital

The digital asset division of Brevan Howard, a major hedge fund specializing in global macro strategies.
The parent company, Brevan Howard, is a top-tier hedge fund with decades of experience, and is highly regarded for bringing its rigorous risk management and sophisticated macro strategies into the world of digital assets. It has extremely high credibility as an institutional investor.

Galaxy Digital Holdings Ltd. (GLXY)

Michael Novogratz (a former prominent Wall Street investor) founded this comprehensive financial services firm specializing in digital assets.
Its business scope is so broad that it is said to aim to be the "Goldman Sachs of the crypto industry." It is characterized by founder Novogratz's strong influence on the market and his network.

Weiss Asset Management (WAM)

Boston-based, relatively small but proven global investment advisory firm/hedge fund.
While there is little mention of digital assets, their investment style of exploiting market inefficiencies suggests they have found investment opportunities in crypto-related companies, which are subject to significant regulation and price volatility.

◼️ Investor Perspective

Strengthening Financial Foundation and Reducing Dilution Risk

What investors should note is that this fundraising is an injection of "high-quality capital" from major institutional investors in the digital asset space.

1. Improved Credibility: The participation of industry leaders like Brevan Howard and Galaxy Digital confirms that Canaan is establishing itself as a major player in the Bitcoin ecosystem.

2. Financial Stability: With a substantial $72 million capital raise, Canaan's financial foundation is significantly strengthened. This is expected to reduce reliance on funding structures that often lead to stock dilution, such as frequent market equity sales (e.g., ATM offerings).

Canaan states that it will leverage this new capital to accelerate innovation and growth, and strengthen its contribution to the global Bitcoin ecosystem.

$72 Million Use of Proceeds

Canaan Inc. plans to allocate the net proceeds primarily to the following areas to accelerate business efficiency and growth.

• High-return infrastructure projects: Investment in computing and energy infrastructure projects aimed at improving asset efficiency and ensuring long-term revenue visibility.

• Business expansion in North America: Acquisition and development of data center sites and facilities in North America.

• Enhancement of production capacity: Expansion of Bitcoin mining machine production capacity (supporting deployment to digital mining sites and sales).

• Research and Development (R&D) and other general corporate purposes.

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