Cryptocurrency mining rig manufacturer Canaan has raised more than $50 million through preferred stock financing to strengthen its research and development capabilities and scale up production.
The Nasdaq-listed company disclosed this in a document. filing This week, the company announced it had raised capital from institutional investors by issuing and selling up to 125,000 Series A convertible preferred shares. The company has not disclosed the names of the investors.
“The company intends to use the net proceeds from the sale of the securities for research and development, production scale expansion, and other general corporate purposes,” Canaan said in the filing.
Canaan stock closed 6.45% lower at $1.45 on Thursday. The company's stock price has fallen 32.87% since the beginning of this month.
In the third quarter of last year, the mining rig maker reported a net loss of $80.1 million, compared to net income of $6.3 million for the same period in 2022. report showed that.
Earlier this month, Canaan announced Secured follow-on purchase orders for over 17,000 Bitcoin mining machines from Cipher Mining Inc. and Stronghold Digital Mining Inc. Both companies are listed on Nasdaq.
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