Canaan Inc. (CAN): Marketing Mix Analysis [Dec-2025 Updated]

You're looking at the numbers for Canaan Inc. (CAN) right now, and honestly, the story is one of aggressive engineering meeting market volatility. As your former BlackRock analyst, I see a company that just posted $150.5 million in total revenue for Q3 2025, largely fueled by their hardware sales, even as they launch the next-gen Avalon A16XP-a machine boasting 300 TH/s at an impressive 12.8 J/TH efficiency. This isn't just about selling boxes; it's about how Canaan positions these products, where they sell them, and what they charge in a sector where the next difficulty adjustment is always looming. Below, we break down their entire 4P's marketing mix to see if this strategy is built for the long haul or just the next Bitcoin cycle.

Canaan Inc. (CAN) - Marketing Mix: Product

You're looking at the tangible output of Canaan Inc. (CAN) as of late 2025, which is overwhelmingly centered on its core competency: Application-Specific Integrated Circuit (ASIC) hardware for digital asset mining. The product strategy has recently sharpened, shedding non-core assets to focus capital and engineering talent where they have a proven track record.

Avalon series ASIC miners for Bitcoin mining remain the flagship offering. The latest iteration, the Avalon A16 series, was officially launched on October 28, 2025. This product line is engineered to combat rising network difficulty by offering superior performance metrics compared to prior generations.

The key specifications for the newest industrial model are concrete:

Canaan Inc. (CAN) is seeing tangible results from its product sales, especially from the home-use segment. For the second quarter of 2025, total product sales reached US$71.9 million. Breaking that down, Avalon Industrial Mining Solutions accounted for $55.9 million, while the Avalon Home-Use Miner Series generated $5.7 million. That home-use revenue represented a 359% sequential increase, carrying a gross margin of 13%. The overall computing power sold in Q2 2025 was 6.4 million Terahash per second (TH/s). By the third quarter of 2025, the total computing power sold exceeded 10.0 exahashes per second (EH/s), or 10,000,000 TH/s.

Next-generation AI chips for edge computing applications are no longer part of the forward-looking product strategy. Canaan Inc. announced a strategic realignment to discontinue this non-core business unit in June 2025. This unit, described as ASICs for edge computing applications, generated approximately US$0.9 million in revenue in fiscal year 2024 and consumed around 15% of total operating expenses in that same year. Resources are being reallocated away from this segment.

The company's focus on integrated mining farm solutions and cloud mining services is evidenced by its self-mining operations and infrastructure deployment. Canaan Inc. reported its installed mining fleet expanded to 9.3 EH/s by the end of Q3 2025. The company reinforces its integrated model across:

• ASIC design and chip R&D
• Computing equipment production
• Self-mining operations
• Bitcoin treasury management

The emphasis on energy efficiency (J/TH) and high hashrate is a primary competitive differentiator. The flagship A16XP boasts 12.8 J/TH. Furthermore, the company reported improving its North American efficiency to 19.7 J/TH by September 2025, driven by deploying the latest-generation machines. The company also pilots initiatives linking mining to energy management, such as a gas-to-computing project in Canada using Avalon A15 Pro miners.

The proprietary chip design and manufacturing process underpins the hardware performance. The Q2 2025 results noted that sequential and year-over-year revenue increases were driven by the increased computing power sold and the increased average selling price. The A16 series launch specifically highlights a leap forward in both energy efficiency and computing power driven by advanced design.

Canaan Inc. (CAN) - Marketing Mix: Place

Canaan Inc. (CAN) deploys a multi-faceted distribution strategy to ensure its high-performance computing systems reach institutional and retail customers across its global footprint.

Direct sales model to large-scale mining farms globally

The core of Canaan Inc. (CAN)'s placement strategy involves direct sales to large-scale institutional mining operations, evidenced by significant purchase orders.

• Secured a landmark U.S. purchase order for more than 50,000 Avalon A15 Pro mining machines, scheduled for delivery in Q4 2025.
• This order represents the largest single order in the past three years.
• Total computing power sold exceeded 10 exahashes per second (EH/s) in Q3 2025, a new quarterly record.
• The company's deployed hashrate reached 9.30 EH/s as of September 2025.

Canaan Inc. (CAN) also supports this direct channel through its own self-mining operations, which serve as a proving ground for its hardware efficiency.

Strategic distribution partnerships in North America and Central Asia

Distribution is augmented through strategic alliances, particularly in North America, while operations in Central Asia have seen strategic adjustments.

• Expanded North American footprint by deploying ~1 EH/s of new computing power in U.S. facilities by mid-2025.
• Announced a partnership with Soluna Holdings, Inc. to deploy 20 MW of Avalon A15 XP miners in Texas (deployment expected Q1 2026).
• Partnered with Luxor Technology Corporation to offer non-dilutive financing, facilitating the sale of over 5,000 Avalon® A15 Pro machines in August 2025.
• Canaan Inc. (CAN) is strengthening its U.S. product supply chain to mitigate tariff exposure.
• The company completed a strategic exit from its mining operations in Kazakhstan, taking ~0.59 EH/s offline in June 2025.

Primary operational and manufacturing base remains in China

While the company's headquarters is listed as Singapore, its core manufacturing and development roots remain anchored in China, though U.S. production is now active.

Canaan Inc. (CAN) was founded in Hangzhou, China, and maintains its primary base there for chip design, R&D, and equipment production. However, the company has operationalized U.S. manufacturing capability to support North American fulfillment.

Sales offices and service centers in key markets like the US and Kazakhstan

Physical presence for sales and support is maintained in key Western markets, though the mining operations in Kazakhstan have been scaled back.

Canaan Inc. (CAN) maintains several sales offices on the U.S. coasts:

• Connecticut: 700 Fairfield Avenue, Suite 1, Stamford, CT, 06902.
• New York: 51 East 12th Street, FL 6, New York, NY 10003.
• West Coast: 855 Oak Grove, Suite 201, Menlo Park, CA 94025.

Online e-commerce platform for smaller, retail-level orders

The company utilizes an e-commerce approach for its consumer-focused product line, which saw substantial growth in 2025.

The gross margin on the Avalon Home Series is expected to be maintained at ~30% into year-end 2025.

Canaan Inc. (CAN) - Marketing Mix: Promotion

Canaan Inc. (CAN) promotion centers on communicating technological superiority and operational stability to a professional, institutional, and high-volume mining audience.

Heavy B2B focus via dedicated global sales teams

The promotional push is heavily weighted toward business-to-business (B2B) engagement, supporting the sale of high-capacity ASIC mining equipment. This is reflected in the financial outlay for promotion. Sales and marketing expenses for the second quarter of 2025 reached US$4.5 million, a sequential increase from US$2.9 million reported in the first quarter of 2025. This spending supports the teams driving large-scale equipment sales, which is a core focus following the June 23, 2025, strategic realignment to sharpen focus on bitcoin mining machine sales.

Participation in major crypto and blockchain industry conferences (e.g., Mining Disrupt)

Canaan Inc. actively uses industry events to engage directly with potential large-scale buyers and investors. The company's presence in 2025 included participation in several key forums:

• The 5th Annual Needham Virtual Crypto Conference on September 4, 2025.
• The 27th Annual H.C. Wainwright Global Investment Conference in New York, from September 8 through September 10, 2025.
• The 'Digital Assets 2025: To Bitcoin and Beyond' virtual conference on February 12, 2025.

You can see the schedule of these key engagements here:

Investor relations and press releases to highlight technological advancements

Investor relations activities serve to validate the technology and operational performance to the financial community. The company issued regular updates, such as the August 31, 2025, mining update, which reported an August Installed Computing Power of 8.6EH/s and a treasury balance of 1,547 bitcoins. Further technological promotion came through partnership announcements:

• Collaboration with Bitfury on Avalon® ASIC-powered upgrade kits announced on August 28, 2025.
• Partnership with Luxor Technology Corporation announced on September 8, 2025, for flexible financing solutions.
• Unveiling of the Avalon A16 series in October 2025.

The Investor Relations contact email remains IR@canaan-creative.com for interested parties.

Digital marketing targeting professional miners and institutional buyers

The digital footprint supports major B2B sales, evidenced by large purchase orders. On October 2, 2025, Canaan announced securing an order from a U.S.-based operator for more than 50,000 Avalon A15 Pro mining machines, scheduled for delivery in Q4 2025. Furthermore, the company's sales geography shows a strong pivot, with China sales rebounding to more than 50% of global revenue in Q2 2025, up from just 2.8% in 2022. This suggests targeted digital outreach supporting domestic Chinese demand alongside international institutional sales.

Co-marketing with large mining pool operators for visibility

Strategic alliances function as co-marketing efforts, demonstrating product integration and operational scale. A notable example is the September 30, 2025, announcement of a partnership with Soluna Holdings, Inc. (Nasdaq: SLNH) to deploy 20 MW of Avalon A15 XP Bitcoin miners. Earlier in the year, a joint mining collaboration with Luna Squares was mentioned, which contributed to an increase in the month-end operating hashrate from 5.53 EH/s to 5.73 EH/s in February 2025. These collaborations showcase product deployment in real-world, large-scale environments.

Canaan Inc. (CAN) - Marketing Mix: Price

Canaan Inc. structures its hardware pricing around the efficiency metric of cost-per-Terahash (T/H) for its primary ASIC mining equipment.

For models listed as FUTURES, indicating pre-order status for future production batches, the pricing structure as of late 2025 includes:

The latest generation Avalon A16XP offers a hash rate of 300 TH/s with a power efficiency of 12.8 J/TH. This compares to the company's reported global average miner efficiency of 25.6 J/TH and a more efficient North America average of 19.6 J/TH.

Significant bulk-order discounts are implied through large institutional contracts, reflecting a tiered pricing approach for high-volume buyers.

• Secured purchase order for more than 50,000 Avalon A15 Pro units.
• This order represented Canaan Inc.'s largest single order in the past three years.
• North American customers contributed 31% of total revenue in Q3 2025.

Competitive pricing involves direct price adjustments, as seen in third-party Black Friday 2025 promotions, where Canaan Inc.'s entry-level Avalon Q received a flat discount of $80 Off. Competitor Bitmain Antminer S21 XP 270Th received a flat discount of $180 Off in the same promotional period.

The pre-order model is evidenced by the FUTURES designation for newer models like the A16 series, with the large A15 Pro order delivery scheduled for Q4 2025. While specific deposit percentages are not detailed, the structure necessitates commitment for future production slots.

Pricing is directly tied to external market dynamics, particularly the cryptocurrency valuation, which influences profitability and thus hardware demand.

• Canaan Inc.'s Q3 2025 revenue increase was indicated as an indication of strong demand amidst the upward bitcoin value.
• As of October 15, 2025, the fair value of the company's Bitcoin treasury was calculated using a price of $112,833 per BTC (based on 1,582 BTC holdings).
• The company's ATM equity offering sales pause depends on market conditions.

Finance: draft 13-week cash view by Friday.