Canaan issued a press release on August 18, 2023, announcing that, “to ensure legal compliance, the Company decided to temporarily shut down approximately 2.0 Exahash/s of its mining computing power in Kazakhstan since July 2023.” The Company added, “The computing power shutdown consists of approximately 50% of the Company’s total installed computing power in Central Asia and North America, which totaled 4.0 Exahash/s at the end of the first quarter of 2023.” The release concluded, “the challenges outlined above are anticipated to substantially affect the Company’s operational mining computing power starting in the third quarter of 2023.” Following this news, shares of Canaan fell over 12% on the same day.