Canaan ADRs Climb on Launch of Gas-to-Computing Pilot in Canada

By Kelly Cloonan

American Depositary Receipts of Canaan gained after the company launched a pilot mining project in Canada that converts natural gas into power for high-density computing environments.

ADRs climbed 21% to $1.32 on Monday and are down 35% this year.

The technology company said Monday the project was launched through a joint mining agreement with Aurora AZ Energy, which develops and operates natural gas wellhead power solutions for data centers and bitcoin mining applications.

Under the agreement, Canaan is guaranteed 90% uptime, subject to exemptions including extreme weather conditions and scheduled gas well or generator maintenance.

The deployment includes over $2 million of Canaan's Avalon A15 Pro miners and containerized data modules that will be installed directly at wellheads. Stranded or flared gas will be converted into usable electricity at power costs below industry norms, using Aurora's on-site energy operations, Canaan said.

The company expects that the deployment will provide approximately 2.5 megawatts of computing capacity directly at the wellhead.

Write to Kelly Cloonan at kelly.cloonan@wsj.com