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Canaan's Fan Gao on Cheap Power and Patience
Canaan's head of mining operations made the case for US hashrate, low-repair machines and long contracts at Mining Disrupt Fort Lauderdale 2025.
Fan Gao spent more than 20 years in financial services before joining Bitcoin mining. When one of the big miners hired Gao to run its North American business, the boss said the profit margin was about 90%, and that a drop to 75% would not be a surprise. Gao told that story on stage at Mining Disrupt Fort Lauderdale, recorded March 25 through 27, 2025, as head of mining operations at Canaan, the ASIC manufacturer. That was 566 days ago. Bitcoin was at $87,393 then. On October 12, 2026, it was $84,041.
Gao's message to the room was about patience. In Gao's words: "So, if you are being speculative and want to make quick money, you probably cannot."
Canaan's offer to American sites was hosting at a fixed cost, and joint mining, where Canaan and a partner share the costs and split the coins. Gao said the United States became the center of mining after China shut the industry down, with 40% of it and, at the time of the talk, close to 50%. The reasons Gao gave were strong infrastructure, competitive power, friendly state policies and the most developed capital market. Investors, Gao said, come to you when you can show them hashrate in the United States.
The weak spot is labor. People are expensive in the US, so a machine that breaks less often is worth more. Gao said customers report that Canaan's machines need fewer repairs than competing ones, and that in hot, dusty West Texas they run without water curtains. Canaan also runs regional repair centers, keeps spare parts and spare units, and will upgrade a partner's fleet.
Gao also made the case for mining as a tool for the grid: a large load that can switch off whenever it is needed, which helps grids that have grown less stable as more renewable power has come on.
Then came the principle Gao said came from early training at Citi. When there is profit in a deal, don't take all of it, and the customer stays year after year. Gao told the room: "I don't want to squeeze the last penny out of you. If you are not profitable the relationship won't be there."
Gao said Canaan had just signed a large contract with a publicly traded miner, and closed by asking for partners anywhere in the US with good infrastructure, cheap power and patience.
The full story is on Mining Disrupt at miningdisrupt dot com, and many more like it play around the clock on Bitcoin Radio.