Canaan Inc. (CAN) has received an additional order from Tether for custom Bitcoin mining hardware, further extending their collaboration following a prior joint R&D effort to test new system designs for large-scale mining.
On Tuesday, the cryptocurrency mining technology manufacturer announced that Canaan will supply high-density hash board modules designed for immersion cooling systems, planned for use at a facility in South America associated with Tether.
Canaan is deepening its role as a custom hardware supplier for large operators like Tether by supplying these systems. This agreement builds on its research and development collaboration with ACME Swisstech, established in 2025, which ultimately resulted in a proof-of-concept platform designed to enhance the efficiency and scalability of mining operations.
As the issuer of the largest stablecoin, USDT, Tether is also developing its own dashboard and management software, indicating its push toward tighter integration of hardware and software in mining operations.
The agreement also includes an additional purchase option, allowing Tether to flexibly expand its infrastructure if the new system's design performs as expected. This is seen as a potential step toward more customized, data center-style Bitcoin (BTC) mining.
Canaan Inc. is a technology company headquartered in Singapore, specializing in ASIC microprocessors and Bitcoin mining hardware. Its balance sheet holds 1,808 Bitcoin, valued at approximately $137 million, representing its highest level of Bitcoin holdings to date.
Canaan's Bitcoin holdings over time. Source: BitcoinTreasuries.NET
Tether expands its mining operations as the industry shifts toward AI infrastructure
The day before this announcement, Tether stated it would expand into Bitcoin mining infrastructure by launching an open-source framework that allows operators to manage their mining hardware and software through a single system.
Bitcoin miners are undergoing a broad industry transformation. Several established mining companies, including HIVE Digital, TeraWulf, and MARA Holdings, are diversifying into data centers and AI workloads to hedge against pressure on mining revenues.
Bernstein analysts recently stated that, given the challenging operating environment for Bitcoin miners, IREN may eventually phase out most of its mining operations and focus primarily on AI cloud infrastructure.
Over the next few years, AI cloud services are expected to become IREN's primary revenue source. Source: Bernstein
At midday on Tuesday, Canaan's stock, traded on Nasdaq, fell approximately 1% on light volume. The CoinShares Bitcoin Mining ETF (WGMI) declined about 5.7%. This exchange-traded fund, which tracks the industry, holds CAN shares with a weight of less than 0.6%.