Canaan Inc. (NASDAQ: CAN), a leading provider of supercomputing solutions, saw its stock soar 5.65% in Thursday's trading session following the announcement of a significant contract win in Japan. The company has secured a 4.5 MW sales contract to deploy its Avalon A1566HA-488T hydro-cooled mining servers, marking a strategic expansion into new markets and applications for its mining hardware.

The contract, signed with an electrical engineering solutions provider in Japan, aims to utilize Canaan's advanced mining servers to support power grid stability. This innovative approach demonstrates the versatility of Canaan's technology beyond traditional cryptocurrency mining applications. The Avalon servers are expected to play a crucial role in stabilizing the power-grid load, with implementation set to begin by the end of 2025.

This development signals Canaan's growing presence in the Asian market outside of China and showcases the company's ability to adapt its technology for broader infrastructure applications. Investors appear to be responding positively to this new revenue stream and the potential for similar contracts in other regions, driving the stock's significant uptick. As Canaan continues to diversify its business model and expand its global footprint, market watchers will be keen to see if this momentum can be sustained in the coming months.