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Canaan Launches 4.5 MW Bitcoin-Mining Pilot With Japanese Utility for Grid Balancing

The state-linked project uses hydro-cooled Avalon rigs with a smart-control chip to absorb surplus renewable power.

Overview

  • The initiative is described as Japan’s first government-linked use of Bitcoin mining for power-grid management by a partly state-owned regional utility.
  • The 4.5 MW installation uses Avalon A1566HA hydro-cooled servers whose smart-control chip adjusts frequency, hashrate and voltage in real time.
  • The rigs are operated as a demand-response buffer, powering down during spikes and absorbing surplus renewable output when supply exceeds demand.
  • Canaan positions the pilot as a template after smaller deployments in the Netherlands and says more grid-integrated sites are planned for 2026.
  • Following the news, Canaan’s stock fell about 7%, with coverage linking the drop to sector weakness and the company’s recent at-the-market offering.