Bitcoin miner Canaan is looking for new capital amid a hunch in its income and backside line.
In line with its Q3 2023 earnings report launched on Nov. 28, the corporate seeks to promote $148 million in fairness via an at-the-market providing. The day earlier than, Canaan introduced that it had reached an settlement with an undisclosed institutional investor to concern as much as 125,000 most well-liked inventory at $1,000 apiece for complete proceeds of $125 million.
In comparison with the third quarter of 2022, the corporate’s income fell 55% to $33.3 million as a result of a lower within the variety of Bitcoin (BTC) mined and a fall within the variety of ASIC mining rigs offered. The agency additionally swung to a web lack of $110.7 million in comparison with a web earnings of $6.3 million in the identical interval a 12 months in the past.
“Total, we confronted elevated pricing competitors and a noticeable softening in buying energy on the demand entrance, which has posed extreme challenges to our gross sales,” stated Nangeng Zhang, chairman and chief government officer of Canaan. The agency expects its This autumn income to be roughly unchanged from Q3 as a result of “difficult market circumstances throughout the business.”
As a consequence of hovering electrical energy prices and decrease BTC costs, a number of Bitcoin miners filed for chapter in 2022, disrupting the gross sales of Bitcoin ASIC mining rigs. Nonetheless, market circumstances have improved this 12 months as a result of easing inflation and a restoration in Bitcoin costs. On Nov. 13, Bitcoin miners earned $44 million in block rewards and transaction charges, the very best ever in historical past.
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