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

Crypto firm Canaan teamed up with a West Texas Bitcoin mining firm to boost its operations in Texas, expanding its North American footprint.

Bitcoin (BTC) mining Canaan has entered into a joint mining agreement with Luna Squares Texas, a Texas crypto mining firm, as part of Canaan’s aim 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 the revenue split dependent on the model, Canaan said in a Nov. 20 press release. For Avalon A14 Series machines, each company will receive 50%, while for Avalon A15 Series machines, Canaan will initially receive 70% of the revenue to recover capital costs, after which the split will return to 50% for each party.

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

As part of the collaboration, the Willow Wells site, which is managed by LS Texas’ staff and is expected to be energized by the first quarter of 2025, will house a combination of 3,480 Avalon A14 and 5,664 Avalon A15 machines, providing about 1.62 EH/s of computing power once fully operational. Following the collaboration announcement, Canaan shares jumped 3.77% on pre-market trading, according to Nasdaq data.