Canaan to Shut Down AI Chip Unit, Refocus on Bitcoin Mining

Canaan to Shut Down AI Chip Unit, Refocus on Bitcoin Mining

In Summary

  • Canaan to shutter its AI chip business amid strategic shift to bitcoin
  • AI unit earned just $900K while consuming 15% of operating expenses
  • CEO says refocus on mining will unlock long-term value
  • Stock fell 5.3% Monday; market cap now $241 million


Catenaa, Sunday, June 29, 2025- Publicly traded crypto miner Canaan announced plans to close its artificial intelligence semiconductor division in the coming months, shifting focus entirely to its core bitcoin mining operations as part of a company-wide strategic realignment.

The AI unit, which specialized in ASIC chips for edge computing, generated just $900,000 in revenue in 2024 while consuming 15% of total operating expenses. Canaan has been seeking a buyer for the underperforming division since March 2022, the firm said in a statement Monday.

CEO and Chairman Nangeng Zhang said the decision reflects a commitment to strengthening the company’s position in the bitcoin mining sector, including mining machine sales, self-mining, and consumer-facing crypto products.

Canaan posted $269.3 million in revenue and $142.8 million in operating expenses for fiscal year 2024. The pivot signals a retreat from diversification efforts and a renewed focus on areas where the company believes it holds a competitive edge.

Shares of Canaan (CAN) dropped 5.3% Monday to $0.58, extending a year-to-date decline of approximately 75%. The company’s market capitalization now stands at $241 million, as investors await signs of traction from the renewed bitcoin-centric strategy.

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