Canaan has signed a contract with a Scandinavian regional heating network to supply computing infrastructure that recycles waste heat from Bitcoin mining. The project, utilizing Canaan's Avalon A1566HA water-cooled mining rigs, will convert mining-generated heat into approximately 80°C hot water for residential heating. The first phase has deployed 228 units, providing 2 MW of heating capacity, with hot water already being supplied to local residents. An additional order for 692 units will increase the total deployment to 920 units, covering 2,800 households and boosting the heating capacity to 8 MW. Canaan's CEO Zhang Nangeng highlighted the project as a practical validation of integrating computing power with energy solutions, marking a strategic expansion beyond traditional mining hardware. The system's parallel architecture allows for dynamic output adjustments and reduces maintenance risks. Despite the announcement, Canaan's stock (CAN) fell nearly 15%, trading around $0.40.