Crypto mining rig maker Canaan has raised over $50 million through preferred shares financing to enhance its research and development capabilities and expand production scale.

The Nasdaq-listed company disclosed in a filing this week that it raised the capital from an institutional investor by issuing and selling up to 125,000 series A convertible preferred shares. The company did not name the investor.

“The company intends to use the net proceeds from the sale of the securities for research and development, expansion of production scale, and other general corporate purposes,” Canaan said in the filing.

Canaan’s stock closed down 6.45% at $1.45 on Thursday. Its stock has seen a 32.87% decline since the beginning of this month.

In the third quarter of last year, the mining rig maker …