In response to a brand new submitting with the USA Securities and Alternate Fee on March 7, Canaan, a Chinese language Bitcoin (BTC) miner and producer of application-specific built-in circuit (ASIC) mining machines, reported that its income decreased by 82.1% year-over-year to $56.8 million in This fall 2022. Throughout the quarter, Canaan offered 1.9 million terahashes per second price of computing energy for Bitcoin mining, not accounting for decrease ASIC costs, representing a 75.8% decline from This fall 2021.
On the similar time, Canaan’s mining income improved 368.2% year-over-year to $10.46 million. As instructed by Nangeng Zhang, chairman and CEO of Canaan:
“To mitigate demand dangers in the course of the market downturn, we have now been diligently enhancing and growing our mining enterprise. Our efforts yielded extra progress in early 2023 with 3.8 EH/s hash charge put in for mining as of the top of February. Accordingly, we have now made decisive investments in bolstering our manufacturing capability and increasing our mining operations to extra different geographic areas that provide advantageous situations.”
Regardless of the phase’s success, nevertheless, Canaan’s web revenue swung to a $63.6-million loss in This fall 2022 in comparison with a revenue of $182.0 million in This fall 2021. As instructed by Jin Cheng, chief monetary officer of Canaan, the loss was as a result of stock write-downs and analysis bills associated to its new fleet of ASICs:
“Contemplating very tender market demand and low promoting value, we incurred an extra stock write-down of RMB205.3 million, which additionally dampened our gross margin. Along side one-time greater analysis and improvement bills referring to the tape-out for our A13 collection, our backside line suffered losses in the course of the quarter.”
For the complete 12 months, the agency’s income decreased by 13.8% to $634.9 million, primarily as a result of higher business situations in Q1 and Q2 2022. The agency at present has $706 million in complete belongings in comparison with $67 million in complete liabilities.
