Canaan Inc.
(NASDAQ:CAN), a cryptocurrency mining {hardware} producer, reported its
quarterly numbers on Tuesday. Through the three-month interval that ended on 31
December 2022, the crypto firm achieved a crypto mining income of $10.5
million, considerably larger than within the earlier quarter and the identical interval
in 2021. Nevertheless, general revenues turned out to be significantly decrease on a quarterly
and a yearly foundation.
Whereas
mining income represented a rise of 16,3% quarter-over-quarter and a
staggering 368,2% year-over-year, the income for the mining {hardware} producer continued its 2022 droop.
The
revenues within the fourth quarter got here in at $56.8 million, translating to 59.9%
QoQ and 82.1% YoY decreases. The product income additionally went all the way down to $46.3
million, representing a droop of 65.1% in comparison with the product income reported
within the third quarter of 2022, and a lower of 85.3% in comparison with the product
income reported in the identical interval of 2021.
The decline
in QoQ and YoY income was primarily as a result of lower in complete computing
energy bought and the decrease promoting worth as a result of decreased worth of Bitcoin.
“We
went via a troublesome fourth quarter because the additional sinking bitcoin worth throughout
the quarter led to lackluster market demand for mining machines as we anticipated.
Amidst the onerous time, we delivered topline outcomes of RMB392 million, exceeding
our earlier steering vary, due to our improved mining enterprise operation
and our fixed exploration of purchasers’ wants,” Nangeng Zhang, the Chairman
and Chief Govt Officer of Canaan, commented.
Canaan’s
shares misplaced 60% of their worth in 2022, rebounding at the moment round 22% from near-record lows. The corporate’s valuation is a good distance from
its file excessive of $40 per share and is at $2.5 per share earlier than Tuesday’s US session begins after falling greater than 8% on Monday.
Visibly Decrease Gross Revenue
for Canaan in 2022
2022 was a difficult 12 months for your complete mining trade and gear producers. Subsequent quarters noticed declining revenues, with the growing problem of mining and lowering Bitcoin costs severely slicing income margins. After a record-breaking 2021, final 12 months introduced considerably decrease revenue for the trade, declining by $6 billion.
As a
consequence, Canaan reported a big lower in income and gross revenue for
the complete 12 months 2022. Gross revenue decreased to $253.4 million from $411.2
million reported in 2021.
„Regardless of
the difficult market setting, 2022 was a notable 12 months of milestones for
our firm. We expanded globally and established abroad provide chains and
headquarters in Singapore. Our groups gained expertise in working our mining
enterprise in numerous abroad places,” Zhang added.
Nevertheless, it
is value noting that Canaan at the moment tries to refocus its core enterprise,
transferring to sel-fmining reasonably than promoting mining rigs. The general mining
income for 2022 was considerably larger than the 12 months earlier than, reaching $31.7
million. Though these figures are nonetheless removed from the income generated from
the sale of crypto miners, additional positioning on this route within the coming
quarters ought to lead to a clearer diversification of income lessons.
Hive
Blockchain, one other publicly-listed crypto firm, reported its This autumn 2022
outcomes final week, displaying a $90 million loss for the interval. Hive can be
searching for methods to diversify its income, and based on a separate buying and selling
replace, it was capable of earn $180,000 from balancing the grid.
Canaan Inc.
(NASDAQ:CAN), a cryptocurrency mining {hardware} producer, reported its
quarterly numbers on Tuesday. Through the three-month interval that ended on 31
December 2022, the crypto firm achieved a crypto mining income of $10.5
million, considerably larger than within the earlier quarter and the identical interval
in 2021. Nevertheless, general revenues turned out to be significantly decrease on a quarterly
and a yearly foundation.
Whereas
mining income represented a rise of 16,3% quarter-over-quarter and a
staggering 368,2% year-over-year, the income for the mining {hardware} producer continued its 2022 droop.
The
revenues within the fourth quarter got here in at $56.8 million, translating to 59.9%
QoQ and 82.1% YoY decreases. The product income additionally went all the way down to $46.3
million, representing a droop of 65.1% in comparison with the product income reported
within the third quarter of 2022, and a lower of 85.3% in comparison with the product
income reported in the identical interval of 2021.
The decline
in QoQ and YoY income was primarily as a result of lower in complete computing
energy bought and the decrease promoting worth as a result of decreased worth of Bitcoin.
“We
went via a troublesome fourth quarter because the additional sinking bitcoin worth throughout
the quarter led to lackluster market demand for mining machines as we anticipated.
Amidst the onerous time, we delivered topline outcomes of RMB392 million, exceeding
our earlier steering vary, due to our improved mining enterprise operation
and our fixed exploration of purchasers’ wants,” Nangeng Zhang, the Chairman
and Chief Govt Officer of Canaan, commented.
Canaan’s
shares misplaced 60% of their worth in 2022, rebounding at the moment round 22% from near-record lows. The corporate’s valuation is a good distance from
its file excessive of $40 per share and is at $2.5 per share earlier than Tuesday’s US session begins after falling greater than 8% on Monday.
Visibly Decrease Gross Revenue
for Canaan in 2022
2022 was a difficult 12 months for your complete mining trade and gear producers. Subsequent quarters noticed declining revenues, with the growing problem of mining and lowering Bitcoin costs severely slicing income margins. After a record-breaking 2021, final 12 months introduced considerably decrease revenue for the trade, declining by $6 billion.
As a
consequence, Canaan reported a big lower in income and gross revenue for
the complete 12 months 2022. Gross revenue decreased to $253.4 million from $411.2
million reported in 2021.
„Regardless of
the difficult market setting, 2022 was a notable 12 months of milestones for
our firm. We expanded globally and established abroad provide chains and
headquarters in Singapore. Our groups gained expertise in working our mining
enterprise in numerous abroad places,” Zhang added.
Nevertheless, it
is value noting that Canaan at the moment tries to refocus its core enterprise,
transferring to sel-fmining reasonably than promoting mining rigs. The general mining
income for 2022 was considerably larger than the 12 months earlier than, reaching $31.7
million. Though these figures are nonetheless removed from the income generated from
the sale of crypto miners, additional positioning on this route within the coming
quarters ought to lead to a clearer diversification of income lessons.
Hive
Blockchain, one other publicly-listed crypto firm, reported its This autumn 2022
outcomes final week, displaying a $90 million loss for the interval. Hive can be
searching for methods to diversify its income, and based on a separate buying and selling
replace, it was capable of earn $180,000 from balancing the grid.
