Canaan Unveils Bitcoin Mining Machine, Sees Speedier ASIC Market Growth

MIAMI — Bitcoin (BTC) mining rig maker Canaan (CAN) unveiled its Avalon 1266 model, aiming to capitalize on what it expects will be even faster growth in the ASICs market.

The Avalon 1266 will have 100 terahash per second (TH/s) mining hashrate capacity and 35 joules per terahash (J/T) power efficiency, a company executive said during the Bitcoin 2022 Conference in Miami. The new model improves upon the previous Avalon 1246, which had capacity of 90 TH/s and 38 J/T efficiency.

Compared with Bitmain’s non-liquid cooled miners, Canaan’s new model specs out between the S19 (95 TH/s, 34.5 J/T) and the S19 pro (110 TH/s 29.5 J/T). Bitmain’s newest offering, the Antminer S19 XP Hyd. with liquid cooling technology, however, boasts 255 TH/s of computing power at efficiency of 20.8 J/T.

Rig manufacturer MicroBT also unveiled a product at the Miami conference – the WhatsMiner M50S with 126 TH/s of computing power and 26 J/T efficiency, coming ahead of Canaan’s new offering.

Speaking with CoinDesk, Canaan Senior Vice President Edward Lu said the new mining machine’s value proposition is its durability. “If you buy our machines, you can use them for a lifetime … You don't have to change your machine or replace them every year.”

“A good miner has to withstand not only the long shipment journeys, but also the diverse operating environments in which it will be deployed in,” he added.

In addition, Lu said, Canaan is setting up mining service centers globally so customers can get faster support for their miners. This new machine and subsequent models, he said, can also be used both with air cooling as well as immersion cooling for heat management.

Pricing for the Avalon 1266 was not yet disclosed.

Canaan expects the ASICs market to grow faster than ever before as customers and manufacturers are becoming more professional and additional key players are joining the industry.

“The market is growing more and more professional now and with some other international key players coming into the market,” Lu said. “I believe this market really has a potential to grow and develop further.”

To that point, chipmaker giant Intel (INTC) recently unveiled its second-generation mining chip, which boasts efficiency up to 26 J/T and is highly customizable for enhanced mining power. Canaan’s Lu views Intel’s entry into the market as a positive catalyst, which will help the industry become more competitive and help grow faster.

“Previously this industry used to be somewhat mysterious. Now, with big companies coming into the market, it is a proof that the industry has potential to grow,” he said, adding that large companies like Intel don't get into small industries unless there’s sizable potential for growth.

Another aspect of players like Intel coming into the industry, said Lu, is it will make the ASIC manufacturing market more competitive and will incentivize the incumbents to invest additional sums. “I think with Intel's coming in, Canaan and all the other peers in this industry should be well prepared for such competition, in terms of technologies and in terms of services,” he said. “I think that Intel coming in will really help improve the industry.”