Based on a brand new submitting with the U.S. Securities and Alternate Fee on Mar. 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% Y/Y to $56.8 million in This autumn 2022. Through the quarter, Canaan offered 1.9 million terahash per second value of computing energy for Bitcoin mining, not accounting for decrease ASIC costs, representing a 75.8% decline from This autumn 2021.
On the identical time, Canaan’s mining income improved 368.2% yr over yr to $10.46 million. As advised by Nangeng Zhang, chairman and CEO of Canaan:
“To mitigate demand dangers throughout the market downturn, we have now been diligently enhancing and creating 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 various geographic areas that provide advantageous situations.”
Regardless of the phase’s success, nevertheless, Canaan’s internet earnings swung to a $63.6 million loss in This autumn 2022 in comparison with a revenue of $182.0 million in This autumn 2021. As advised by Jin Cheng, Chief monetary officer of Canaan, the loss was because of stock write-downs and analysis bills associated to its new fleet of ASICs.
“Contemplating very tender market demand and low promoting worth, we incurred an extra stock write-down of RMB205.3 million, which additionally dampened our gross margin. Together with one-time increased analysis and growth bills regarding the tape-out for our A13 collection, our backside line suffered losses throughout the quarter.”
For the total yr, the agency’s income decreased by 13.8% to $634.9 million, primarily because of higher business situations in Q1 and Q2 2022. The agency at present has $706 million in complete property in comparison with $67 million in complete liabilities.
