Canaan Inc. (NASDAQ: CAN), a prominent manufacturer of Bitcoin mining equipment, has announced a significant contract to supply heat-recovery computing infrastructure to an advanced district heating network located in the Nordic region. This landmark agreement signifies Canaan's strategic pivot and expansion into what it terms “energy-integrated compute infrastructure,” moving beyond its traditional core business.

The core of this innovative solution lies in Canaan’s Avalon A1566HA hydro-cooled mining units. These specialized units are engineered to efficiently capture the thermal output generated by Bitcoin mining operations and then redirect this heat as hot water into existing residential heating systems. The technology is capable of generating water at approximately 80 degrees Celsius, a temperature range perfectly compatible with the infrastructure already in place within the district heating network.

The project is structured into two distinct phases to ensure a seamless integration and scaling of capacity. The initial phase, which is already operational, involves 228 A1566HA units, collectively providing 2 megawatts (MW) of heating capacity and successfully delivering hot water to local residents. Building on this success, the unnamed Nordic heating provider placed a substantial follow-on order in March 2026 for an additional 692 units. This expansion will significantly boost the total heating capacity to an impressive 8 MW. Upon full deployment, this advanced system is projected to serve approximately 2,800 homes, making a substantial contribution to local energy efficiency and sustainability.

Canaan's proprietary architecture offers a distinct technical advantage over conventional boiler systems. The heating nodes are designed to run multiple A1566HA units in parallel, which supports dynamic overclocking and underclocking capabilities. This allows operators to adjust the thermal output in real time, precisely matching the fluctuating heating demand of the district. Furthermore, this parallel design inherently reduces the risk of single-point failures and simplifies maintenance procedures compared to more centralized boiler systems, ensuring greater reliability and operational efficiency.

The selection of Canaan's solution followed a rigorous and competitive evaluation process. The customer meticulously assessed multiple available solutions before ultimately choosing Canaan's equipment for the second, larger phase of the project, underscoring the superior performance and economic viability of their technology. The Nordic region is globally recognized as a benchmark for advanced district heating technology, supported by robust governmental policy frameworks that actively incentivize efficient heat distribution across urban networks. Nangeng Zhang, CEO of Bitcoin and energy-integrated compute at Canaan, took a direct role in the platform’s development, emphasizing the importance of heat reuse. Zhang stated, “Heat reuse is no longer an ancillary byproduct of compute. It is central to building a more efficient, sustainable energy future, and a core part of how we think about system design at Canaan.”

For Canaan, this contract represents a pivotal moment in its strategic evolution. The concept of