Canaan Inc. Expands Energy Efficiency Initiatives with 3 MW Compute Heat Recovery Proof-of-Concept at Canadian Greenhouse

Canaan (NASDAQ: CAN) announced a 3.0 MW proof-of-concept in Manitoba with Bitforest to recover compute heat from an Avalon liquid-cooled system and use it to supplement greenhouse electric-boiler heating.

Rhea-AI Summary

Canaan (NASDAQ: CAN) announced a 3.0 MW proof-of-concept in Manitoba with Bitforest to recover compute heat from an Avalon liquid-cooled system and use it to supplement greenhouse electric-boiler heating.

Under a 24-month term Canaan will deploy 360 Avalon A1566HA-460T units and four liquid-cooling modules; the Host targets 95% uptime. Canaan estimates ~90% of server electricity can be captured as heat, can output >75°C hot water, and reports an all-in power cost of US$0.035/kWh.

The PoC aims to measure heat-recovery efficiency, system stability, and operating intensity and to evaluate capital savings from removing industrial cooling towers.

Positive

• 3.0 MW compute heat recovery pilot in Manitoba
• Deployment of 360 Avalon A1566HA-460T servers and four cooling modules
• Estimated 90% of server electricity recoverable as heat
• Low reported all-in power cost of US$0.035/kWh

Negative

• Projected 90% heat-capture and capital savings are estimates pending operational confirmation
• Site economics partly dependent on Bitforest participating in grid programs to monetize excess power

Argus Jan 6 session

-2.23% close to close Open Argus

Details

News Market Reaction – CAN

In the Jan 6 session, CAN declined 2.23%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights a 3.0 MW heat-recovery proof-of-concept using 360 liquid-cooled Avalon ...

Analysis

This announcement highlights a 3.0 MW heat-recovery proof-of-concept using 360 liquid-cooled Avalon servers to supply greenhouse heating, with an estimated 90% of electricity captured as useful heat and an all-in power cost of US$0.035/kWh. It extends Canaan’s recent focus on efficient, sustainability-oriented deployments. Investors may track real-world uptime, heat-recovery performance, and follow-on deployments to gauge how meaningfully this model contributes to future operations.

Key Figures

Proof-of-concept capacity: 3.0 MW Avalon servers deployed: 360 units Cooling modules: 4 modules +5 more

Proof-of-concept capacity

3.0 MW

Heat-recovery PoC at Manitoba greenhouse

Avalon servers deployed

360 units

Avalon A1566HA-460T liquid-cooled computing servers

Cooling modules

4 modules

Liquid-cooling container modules in PoC system

PoC term

24 months

Initial term of Bitforest hosting agreement

Target uptime

95%

Host’s uptime target for Canaan equipment

Heat-recovery efficiency

90%

Estimated share of server electricity captured as heat

Power cost

US$0.035/kWh

All-in cost including power and routine operations

Hot water output

up to one million tonnes annually

Designed combined system hot water delivery

Historical Context

5 past events · Latest: Dec 17

5 events

1. Dec 17

   Share buyback renewal

   24h Move

   -1.8%

   Renewed US$30M share repurchase authorization for ADSs and Class A shares.

2. Dec 10

   Crypto operations update

   24h Move

   -2.3%

   November 2025 bitcoin‑mining metrics and expanded hashrate and power capacity.

3. Nov 19

   Hosting agreement

   24h Move

   -6.5%

   Strategic hosting deal for 20 MW Avalon miners at a Texas wind-powered site.

4. Nov 18

   Earnings update

   24h Move

   +20.8%

   Q3 2025 results with strong revenue growth and improved profitability metrics.

5. Nov 17

   Industry report mention

   24h Move

   -4.4%

   Industry white paper highlighting Canaan’s ranking and efficiency trends in mining.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

liquid-cooled computing servers, liquid-cooling container modules, closed-loop heat-exchange system, demand-response, +3 more

7 terms

liquid-cooled computing servers technical

"Avalon A1566HA-460T liquid-cooled computing servers and four liquid-cooling"

Liquid-cooled computing servers are data center machines that use a liquid—often water or a special coolant—to remove heat from processors and components instead of relying mainly on fans and air flow. For investors, they matter because better cooling can increase computing performance, reduce energy costs, and enable denser, more efficient facilities, which can lower operating expenses and boost capacity for revenue-generating workloads like cloud services and AI processing.

liquid-cooling container modules technical

"servers and four liquid-cooling container modules (the "Canaan Equipment")"

Liquid-cooling container modules are self-contained units—often the size of a shipping container—that house electronics such as servers and use liquid circulating systems to remove heat more efficiently than air cooling. For investors, they matter because they can lower energy costs, increase computing density and performance, and speed deployment of data centers or mining operations, which affects capital spending, operating margins and scalability risks.

closed-loop heat-exchange system technical

"intake water for the site's electric boilers through a closed-loop heat-exchange system"

A closed-loop heat-exchange system is a self-contained arrangement of pipes, pumps and a heat-transfer fluid that moves heat between two places without exposing the fluid to the outside environment. Like a home's sealed radiator loop that circulates the same water to warm rooms, it improves energy efficiency, reduces contamination risk and controls temperatures precisely. For investors, this matters because such systems can lower operating costs, cut emissions, reduce regulatory exposure and influence maintenance and capital spending for companies that rely on thermal processes.

demand-response technical

"If Bitforest participates in grid demand-response or sells power back to the grid"

Demand-response is a program or market practice where electricity users are paid or incentivized to reduce or shift their power use at critical times to help balance the grid. For investors, it changes how utilities and energy companies earn money and manage costs—similar to a business turning down nonessential lights during a busy season to avoid overload—affecting revenue streams, capacity planning, and regulatory incentives.

semiconductor chips technical

"cutting-edge semiconductor chips that create practical energy reuse"

Semiconductor chips are tiny electronic 'brains' made from materials that control electrical signals to perform calculations, store data, or manage power inside devices like phones, cars, servers and industrial machines. They matter to investors because chip availability, design advances and manufacturing costs directly affect sales, profit margins and the competitiveness of many companies; shortages or breakthroughs can change industry growth, supply chains and stock valuations quickly.

data-driven technical

"we are not just deploying computing equipment for one project—we hope to build a data-driven"

An approach where decisions, strategies and actions are based primarily on measured information and analysis rather than gut feeling or habit. For investors, a data-driven company or report suggests choices are backed by evidence—like a chef following a tested recipe—making performance more predictable, risks clearer and outcomes easier to track, though the value depends on the quality and relevance of the underlying data.

hot water technical

"Liquid cooling enables us to output high-temperature hot water above 75°C"

A colloquial phrase meaning a company or person is facing trouble such as legal action, regulatory scrutiny, serious financial problems, or public backlash. For investors it signals increased risk: think of it as a boil on the balance sheet that can cause pain if left untreated, potentially harming earnings, stock price, access to capital, or reputation until the issue is resolved.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Canaan's Avalon^® computing system to supplement electric-boiler heating at a greenhouse in Manitoba

SINGAPORE, Jan. 6, 2026 /PRNewswire/ -- Canaan Inc. (NASDAQ: CAN) ("Canaan"), an innovator in crypto mining, today announced a 3.0 MW proof-of-concept (PoC) with Bitforest Investment Ltd. ("Bitforest" or the "Host") in Manitoba, Canada, to recover heat from an Avalon computing system and use the heat as a supplemental source for greenhouse operations. The pilot is part of Canaan's broader initiatives to make high-density computing operations more efficient through the use of cutting-edge semiconductor chips that create practical energy reuse across commercial and consumer applications.  The project will also allow Canaan to evaluate key performance indicators for agricultural applications, such as heat recovery efficiency, system stability, and operating and maintenance intensity under real operating conditions.

Under the agreement, for an initial 24-month term, Canaan will deploy an Avalon computing system consisting of 360 units of the Avalon A1566HA-460T liquid-cooled computing servers and four liquid-cooling container modules (the "Canaan Equipment") to be operated by the Host. Delivery will follow Bitforest's notice to proceed. Heat captured from Canaan's computing system will preheat the intake water for the site's electric boilers through a closed-loop heat-exchange system, thus lowering the incremental energy required to meet target temperatures. The Host targets 95% uptime for the Canaan Equipment. Based on current assumptions, Canaan estimates that approximately 90% of the electricity consumed by the computing servers will be captured and transferred to the heating system. Actual performance metrics will be confirmed once fully operational. 

Subject to actual operating conditions, the computing system is expected to achieve attractive capital efficiency. The unique system is expected to lower capital expenditure by removing the industrial cooling towers which would otherwise be needed in liquid-cooled data centers. In terms of operating expenses, Canaan also enjoys a very low all-in cost of power of US$0.035/kWh, which includes the Host's power cost and routine operation, troubleshooting, and maintenance of the Canaan Equipment. If Bitforest participates in grid demand-response or sells power back to the grid, Canaan will share in the economic benefits of such programs, making this PoC a true win-win collaboration.

"With this PoC, we are not just deploying computing equipment for one project—we hope to build a data-driven, replicable model," said Nangeng Zhang, chairman and chief executive officer of Canaan. "This program will allow us to measure, model, and scale heat recovery for agriculture in colder climates. Liquid cooling enables us to output high-temperature hot water above 75°C, making compute heat directly usable for greenhouses. The PoC expands our broader efforts to rethink how computing infrastructure can enhance energy sustainability for households, businesses, and industrial partners."

Large greenhouse facilities often rely on fossil-fueled boilers as their primary heat source. Several regions, including Canada, have adopted carbon pricing to encourage lower-carbon heating options in greenhouses. Canaan's Avalon computing system will provide supplemental heat that ties into Bitforest's existing boiler loop. The combined setup is designed to deliver up to one million tonnes of hot water annually by recycling heat from computing servers that would otherwise be wasted, improving overall site power efficiency while reducing environment impact.

Canaan will continue expanding its energy efficiency initiatives, including industrial heat-reuse deployments, bitcoin-mining space heaters for home use, and ongoing advances in power-efficient Avalon systems built on Canaan-designed semiconductor chips.

About Canaan Inc.

Established in 2013, Canaan Inc. (NASDAQ: CAN), is a technology company focusing on ASIC high-performance computing chip design, chip research and development, computing equipment production, and software services. Canaan has extensive experience in chip design and streamlined production in the ASIC field. In 2013, Canaan's founding team shipped to its customers the world's first batch of mining machines incorporating ASIC technology under the brand name Avalon and, today, the Company's machines have the second largest share of the global bitcoin mining market. In 2019, Canaan completed its initial public offering on the Nasdaq Global Market.  To learn more about Canaan, please visit https://www.canaan.io/.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Canaan Inc.'s strategic and operational plans, contain forward-looking statements. Canaan Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC") on Forms 20-F and 6-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Canaan Inc.'s beliefs and expectations, such as expectations with regard to revenue or mining hash rate deployment, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's goals and strategies; the Company's future business development, the ability of the Company to execute against its goals, financial condition and results of operations; the expected growth of the bitcoin industry and the price of bitcoin; the Company's expectations regarding demand for and market acceptance of its products, especially its bitcoin mining machines; the Company's expectations regarding maintaining and strengthening its relationships with production partners and customers; the Company's investment plans and strategies, fluctuations in the Company's quarterly operating results; competition in its industry; changing macroeconomic and geopolitical conditions, including evolving international trade policies and the implementation of increased tariffs, import restrictions, and retaliatory trade actions; and relevant government policies and regulations relating to the Company and cryptocurrency. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Canaan Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact

Canaan Inc.
Xi Zhang
IR@canaan-creative.com

Christensen Advisory
Christian Arnell
canaan@christensencomms.com

Public Relations Contact

BlocksBridge Consulting
Jesse Colzani
canaan@blocksbridge.com

View original content:https://www.prnewswire.com/news-releases/canaan-inc-expands-energy-efficiency-initiatives-with-3-mw-compute-heat-recovery-proof-of-concept-at-canadian-greenhouse-302653360.html

SOURCE Canaan Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is Canaan's PoC announced January 6, 2026 for CAN?

Canaan announced a 3.0 MW heat-recovery proof-of-concept in Manitoba to use Avalon compute heat for greenhouse heating.

How many Avalon units will Canaan deploy in the CAN Manitoba pilot?

The PoC will deploy 360 Avalon A1566HA-460T liquid-cooled servers and four liquid-cooling container modules.

What heat-recovery efficiency does Canaan estimate for the CAN pilot?

Canaan estimates about 90% of the electricity used by the computing servers can be captured and transferred to the heating system.

What is the term and uptime target for Canaan's CAN pilot with Bitforest?

The initial term is 24 months, and the Host targets 95% uptime for the Canaan equipment.

What operating cost did Canaan state for the CAN project power?

Canaan reported a very low all-in cost of power of US$0.035/kWh, including Host power and routine maintenance.

How will Canaan's compute heat be used at the Manitoba greenhouse (CAN)?

Captured heat will preheat intake water for the site's electric boilers via a closed-loop heat-exchange system to lower incremental heating energy.