Canaan designs and sells Bitcoin mining machines (ASICs) under its AvalonMiner brand, making it one of the leading producers of Bitcoin mining hardware globally. Canaan is a fabless IC design company — it designs its own chips but outsources fabrication to third-party foundries and assembles finished machines in China, Malaysia, and the US. The core business is selling AvalonMiner hardware to commercial miners, primarily large institutional operators concentrated in North America. Machine sales revenue is driven by the volume of computing power sold (measured in terahash per second) multiplied by the average selling price per TH/s — both of which are highly sensitive to Bitcoin price. Canaan also runs a second segment where it mines Bitcoin using its own rigs at partner sites globally, generating revenue directly from block rewards rather than equipment sales. In 2024, Canaan launched the Avalon Home series — compact, consumer-facing mining devices sold through its online store in nearly 100 countries — which carries higher gross margins than its industrial line due to limited competition. Beyond these two segments, Canaan is building out power infrastructure in the US, targeting gigawatt-scale capacity by end-2026, with a stated ambition to pivot facilities between Bitcoin mining and AI/HPC colocation workloads depending on economics. Canaan holds mined Bitcoin on its balance sheet as a treasury asset, which it also uses as collateral for operating loans.