What are the pricing and supply terms of the Avalon® ASIC kits, and could they constrain or boost Bitfury's mining capacity relative to competitors?

Pricing & supply terms – The press release states that Canaan will deliver Avalon® ASIC upgrade kits to Bitfury on a fixed‑price, volume‑discounted basis with a guaranteed delivery schedule for the next 12 months. Although the exact dollar amount per kit is not disclosed, the language “competitive pricing” and “secured supply of up to tens of thousands of units” implies that Bitfury has locked in a bulk‑order price that is lower than spot‑market rates and that Canaan has committed to a minimum supply floor (enough kits to support a multi‑petahash expansion) with the option to order additional units under the same terms. The agreement also includes a right‑of‑first‑refusal for any future Avalon‑based hardware upgrades in North America, effectively giving Bitfury a quasi‑exclusive pipeline.

Impact on mining capacity vs. peers – By securing a predictable, cost‑controlled flow of Avalon chips, Bitfury can scale its hash‑rate faster than rivals that are still battling supply bottlenecks at manufacturers such as Bitmain and MicroBT. The guaranteed supply removes the risk of a “chip shortage”‑driven slowdown, allowing Bitfury to bring new capacity online on schedule and potentially capture a larger share of the Bitcoin mining rewards. If the pricing is indeed below market, Bitfury’s unit economics improve (lower electricity‑per‑TH cost), which could translate into higher margins and make the stock more attractive relative to other mining equities. Traders should watch for a rise in Bitfury‑linked securities (e.g., Bitfury Group ADR, related hash‑rate ETFs) and a possible short‑term rally in Bitcoin as the market prices in the expectation of increased hash‑rate supply from a well‑funded, hardware‑secure operator. Conversely, any sign that the supply commitment is scaled back—e.g., delayed shipments or price escalations—would re‑introduce the same capacity risk that has been weighing on peers, prompting a reassessment of the bullish thesis.