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Canaan Inc. (NASDAQ: CAN), the manufacturer of Bitcoin mining hardware, has entered into an agreement to supply heat-recovery computing infrastructure for a district heating network in the Nordic region, the company revealed today.
This arrangement involves Canaan’s Avalon A1566HA hydro-cooled mining units, designed to capture heat generated by Bitcoin mining activities and repurpose it as hot water for residential heating systems. These units produce water at around 80 degrees Celsius, a temperature suitable for existing district heating networks.
The initiative is proceeding in two stages. The initial phase, comprising 228 A1566HA units and providing 2 MW of heating capacity, is already operational and supplying warm water to nearby inhabitants.
In March 2026, the undisclosed Nordic heating provider commissioned an additional 692 units, increasing the total capacity to 8 MW. Once fully implemented, the system is projected to supply approximately 2,800 households.
According to Canaan, its system architecture offers a technical advantage over conventional boilers. The heating nodes operate with numerous parallel A1566HA units that support flexible speed adjustments, enabling operators to modify output dynamically based on fluctuating heating demands. The parallel configuration also minimizes the risk of single-point failures and simplifies upkeep compared to centralized boiler systems.
This selection followed a competitive assessment where the client evaluated various solutions before selecting Canaan’s equipment for the subsequent and larger phase of the project. The Nordic area serves as a global standard for district heating technology, and its governments have established policies that encourage efficient heat distribution throughout urban systems.
Bitcoin and energy-integrated computation
CEO Nangeng Zhang stated that he was directly involved in the development of the platform, including the physical layout of the unit’s design.
“Heat reclamation is no longer merely a secondary outcome of computation; it is fundamental to fostering a more efficient and sustainable energy future, and it forms a key aspect of our system design philosophy at Canaan,” Zhang commented.
For Canaan, this contract signifies a strategic expansion beyond its primary business of Bitcoin mining equipment into what the company terms “energy-integrated compute infrastructure.” The concept of converting hash power to heat has been discussed within the mining sector for years, but the difficulty in producing high-quality heat on a commercial scale has hindered widespread adoption. Canaan presents the Nordic project as proof that this obstacle has been overcome.
Canaan’s shares experienced a decline of almost 15% today, trading close to $0.40.
Source: : bitcoinmagazine.com