Canaan Refocuses on Bitcoin Mining as It Tests U.S. Chip Production and Exits AI Hardware

Canaan Refocuses on Bitcoin Mining as It Tests U.S. Chip Production and Exits AI Hardware

by Team Crafmin
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Canaan, once straddling two worlds—Bitcoin mining and AI chips—has decided it’s time to stop chasing two rabbits. The company is now putting all its chips on the table for what it knows best: Bitcoin ASICs. Quietly, yet deliberately, Canaan has dipped its toes into U.S. manufacturing waters, marking a sharp pivot away from its AI ventures and returning to its bread and butter.

Image 1 (Source: Forkast News)

Since rolling out in 2013, Canaan has carved a name for itself with its Avalon-branded ASICs, custom-built to solve Bitcoin’s cryptographic puzzles. Think of them as the drag racers of the computing world—built for one purpose, and built well. Publicly traded under the ticker CAN on NASDAQ, the company has consistently proved it knows the lay of the land when it comes to crypto hardware.

Made in America: A Strategic Move, Not Just a Show Pony

This week, with little fanfare, Canaan kicked off a pilot manufacturing run in the United States, mirroring its existing operations in Malaysia. Sure, labor costs and overheads are steeper on U.S. soil, but Canaan isn’t just throwing darts at a board—it’s playing the long game. By planting a flag closer to its North American clientele, it’s looking to kill two birds with one stone: faster delivery and less exposure to the political crossfire of tariffs and trade wars.

Yes, American production doesn’t come cheap, and Canaan knows that. But with shifting sands in global trade—such as the recent 10% tariff on Malaysian-made chips—the company sees this move as a stitch in time. If Washington pulls the rug out from under Chinese imports, Canaan won’t be caught flat-footed. A spokesperson said they’re rolling up their sleeves to find the sweet spot where domestic production actually makes dollars and sense.

Calling Time on AI Chips: One-Horse Race from Here On

In a move that’s been a long time coming, CEO Nangeng Zhang confirmed that Canaan is bowing out of the AI chip game. Balancing crypto mining and AI hardware turned out to be like trying to dance at two weddings—it just wasn’t sustainable. Zhang made it clear: Canaan is picking a lane and flooring the gas.

By hanging up its AI gloves, the firm can throw all its weight behind what it does best. Rather than spreading itself thin trying to be a jack of all trades, Canaan is choosing to be the master of one.

Following the Herd: The Westward Drift of Crypto Chipmakers

Canaan isn’t sailing this ship alone. Other crypto hardware giants like Bitmain and MicroBT are also eyeing the U.S. and Canada for manufacturing. It’s not just a passing trend—it’s a sea change. With regulators tightening the screws and customs delays becoming the norm, having boots on the ground in North America is fast becoming table stakes.

Take last year, for instance—when Bitmain had a batch of rigs seized by U.S. Customs over murky ties to Huawei. That was a wake-up call for the whole industry. Canaan’s U.S. test run is part of this broader shift, aimed at staying ahead of the curve.

Image 2: (Source: Nasdaq)

No Cutting Corners: Full Compliance on the Radar

For now, chips bound for the U.S. will still roll off Malaysian lines—fully certified and by the book. But if Canaan does pull the trigger on American scaling, it’s pledged to play by every rule in the book. From tech specs to national security regs, they’re walking the straight and narrow.

This isn’t a company looking for shortcuts. Instead, they’re going the extra mile to show partners, clients, and regulators alike that they mean business—and that business will be done above board.

Looking Down the Road: Crunching the Numbers

Canaan’s road map isn’t pie in the sky—it’s grounded, strategic, and focused on trimming the fat. First order of business? Cut costs stateside, likely through automation and better supply chain gymnastics. Then comes watching the tariff winds—if they blow in the wrong direction, Canaan wants to be already one step ahead.

Read also: Samson Mow Pushes for European Bitcoin Adoption Following Invitation from French Politician

Finally, they’ll be gauging the appetite for mining gear right in their backyard. If the stars align—competitive costs, solid demand, and friendly trade policy—this U.S. adventure could turn from a trial balloon into a full-blown growth engine.

Still, the company issued the usual safe-harbor clause, effectively saying: “This is the plan, but if the world throws a wrench in the works, we’ll pivot.”

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