Canaan Inc. (NASDAQ: CAN), a leading provider of high-performance computing solutions, saw its stock surge 5.41% in Tuesday's trading session following two major announcements that signal strong investor confidence and expansion plans for the company.

The primary catalyst for the stock's upward movement was the announcement of a $72 million strategic investment from prominent institutional investors. Brevan Howard's BH Digital division, Galaxy Digital, and Weiss Asset Management have collectively invested in Canaan, demonstrating their confidence in the company's future prospects. This strategic backing from well-known players in the cryptocurrency and financial sectors is likely to boost Canaan's market position and growth potential.

Simultaneously, Canaan revealed plans for a $72 million registered direct offering of American Depositary Shares (ADS). The company intends to use the net proceeds from this offering for the acquisition and development of data center sites and facilities in North America. This move aligns with Canaan's strategy to expand its presence in the North American market and potentially capitalize on the growing demand for high-performance computing solutions in the region.