Canaan to discontinue non-core AI semiconductor business unit

Canaan (CAN) commenced a strategic realignment aimed at sharpening its focus on its core businesses of bitcoin mining machine sales, self-mining operations, and consumer mining products. As part of this initiative, the company will discontinue its non-core AI semiconductor business unit, described in the annual report for the year ended December 31, 2024 as “ASICs for edge computing applications”, with the process expected to conclude in the coming months. By discontinuing the AI semiconductor business unit, Canaan will reallocate resources and leadership attention toward its digital asset ecosystem. In FY24, the company’s revenue from the sale of edge computing products was approximately $0.9M. Unaudited operating expenses related to this business accounted for around 15% of the company’s total operating expenses for fiscal FY24. After the AI semiconductor business unit is fully discontinued, the company expects its operating expenses to decline significantly.