Core Insights - Canaan Inc. is discontinuing its non-core AI semiconductor business to focus on its primary operations in crypto-related businesses, specifically bitcoin mining machine sales, self-mining operations, and consumer mining products [1][2][5] - The decision aims to streamline operations, enhance capital efficiency, and reduce expenditures unrelated to the company's core business lines [2][4] - The AI semiconductor business generated approximately US$0.9 million in revenue for fiscal year 2024, accounting for around 15% of the company's total operating expenses [3] Strategic Realignment - The company has been exploring strategic options for its AI semiconductor business since March 2022, including potential asset sales or orderly wind-downs [4] - After discontinuing the AI semiconductor unit, the company expects a significant decline in operating expenses [4] - The CEO emphasized that focusing on core strengths in crypto infrastructure and bitcoin mining is the most strategic path forward for the company [5] Company Background - Canaan Inc. was established in 2013 and specializes in ASIC high-performance computing chip design, chip R&D, computing equipment production, and software services [6] - The company is known for shipping the world's first batch of mining machines incorporating ASIC technology in bitcoin's history under the brand name Avalon [6]