Canaan Launches Cloud Computing Product to Mine Bitcoins

Showcasing its AI chips at CES2020, Canaan leads bitcoin mining hardware players in cloud computing.

Author: Belinda Zhou   

China's supercomputing company Canaan Inc. (Nasdaq: CAN) announced a new bitcoin mining method through its blockchain cloud computing power platform on Thursday.

The Hangzhou-headquartered company said in a statement that users can obtain bitcoins without the need to purchase mining machines. Users also don't need to operate and maintain mining machines.

Canaan said the new product is a SaaS system that allows partners to quickly build a mature cloud computing power platform. The platform also supports customized development based on basic systems, covering pricing, management fee ratio, and electricity fee collection mode.

Users can choose options including physical delivery of the cloud computing power, standard cloud computing power, forward contracts of cloud computing power.

"Alibaba's mission is to make it easy to do business anywhere, while Canaan's mission is to make it easy to do cloud computing anywhere," the company said in its statement.

Additionally, the users can conduct cloud computing power transactions under the premise of user isolation and improve the computing power liquidity across platforms.

"The supercomputing industry will be a giant-level industry in the field of blockchain and will have a significant impact on the future development of digital currency," a blockchain expert commented. 

China's central bank said Monday that it has introduced internal tests of digital currency in Shenzhen, Suzhou, Chengdu, and Xiong'an, a state-level new area near Beijing. The program can be dated back to 2014 and known as  known by its internal shorthand "DC/EP," or "digital currency/electronic payment." 

The new digital currency, like bitcoin and Facebook Inc.'s Libra, will replace some cash, or M0, excluding M1 and M2 like bank deposits, the digital currency research institute of People's Bank of China officials said.

Bitcoin was trading at $7503 on Friday afternoon, up over 50% from below $5000 in mid-March.

Shares in Canaan were trading at $4.23 per share. The stock has been rising in the last month, up from $2.87 on April 1, a solid performance especially in light of the sluggish U.S equity markets.