Canaan to Supply Immersion-Cooled Bitcoin Hardware to Tether

Canaan announced Tuesday it will supply immersion‑cooled, high‑density hash board modules for use at a Tether-linked Bitcoin mining facility in South America. The purchase agreement includes an option allowing Tether to place additional orders if the hardware meets performance expectations.

The modules are built for immersion‑cooled, data‑center style deployments and follow a 2025 research and development partnership between Canaan and ACME Swisstech that produced a proof‑of‑concept platform aimed at improving efficiency and scalability in mining operations.

Tether is developing its own control boards and management software to coordinate hardware and operations. A day before the Canaan announcement, Tether released an open‑source framework intended to let operators manage mining hardware and software through a single system.

Canaan, a Singapore‑based maker of ASIC microprocessors and Bitcoin mining equipment, reported holding 1,808 BTC on its balance sheet, valued at about $137 million. The company’s shares traded about 1% lower midday Tuesday. The CoinShares Bitcoin Mining ETF, which holds Canaan at under 0.6% weight, fell about 5.7% that day.

Immersion cooling uses liquid to manage heat and can increase power density compared with air‑cooled systems, allowing more computing power in a smaller rack footprint. Canaan markets the modules for such configurations to raise density and operational efficiency at large installations.

Financial terms of the order were not disclosed. The planned South America deployment follows a pattern of miners locating operations in regions with favorable energy costs or regulatory conditions.

Several public miners, including HIVE Digital, TeraWulf and Marathon Digital, have diversified into data center and artificial intelligence workloads. Analysts at Bernstein have suggested some operators could shift toward AI cloud services amid pressure on traditional mining revenues.