Canaan (CAN) won a competitive bid to supply hash-to-heat equipment for a district heating network in the Nordic region, the company said Tuesday.

The project will use Canaan's Avalon A1566HA hydro-cooled mining units with a combined capacity of about 8 megawatts to provide heat for local district heating infrastructure, replacing traditional heating systems, the company said.

Canaan said about 2 MW of heating capacity is already operating in the region, and the customer placed a follow-on order in March for an additional 6 MW, with the full project expected to provide heating for roughly 2,800 homes.

Shares of the company were down nearly 8% in Tuesday premarket trading.