Canaan, a Bitcoin miner firm, released its quarterly financial report this morning. The report shows that Revenues in Q3 2022 were $137.5 million (RMB978.2 million), representing a decrease of 40.8% from Q2 2022 and 25.8% compared to last year’s figures for the same time frame.
Canaan chairman and CEO, Mr. Nangeng Zhang, said:
The bitcoin mining market deteriorated during the third quarter, as the bitcoin price fluctuated and further dipped to around sixteen thousand dollars recently. The negative market dynamics have significantly hindered bitcoin miners’ revenues and cash flows.
Zhang claims that the 3.5 million Thash/s sold during their third quarter was within their expectations because of the contracts they had acquired in prior quarters and because they could fulfill those contracts at this point.
The press release also revealed that Canaan is expanding its Singapore headquarters with potential local research and development expertise to support its continued efforts to improve its research and development skills.
Moreover, Zhang asserts that amid the bearish market, the company continues to grow its mining operation. They do so by tapping into U.S. markets for optimal allocation of their already established machines. As a result, it “generated mining revenue of RMB 62 million for the quarter.”
The CFO of Canaan, Mr. James Jin Cheng, also said:
We experienced unprecedented pressure due to the weakened market demand in the third quarter, resulting in a decline in our topline performance.
Canaan Financial Highlights For Q3 2022
Revenue from products was RMB916.0 million (US$128.8 million) in the third quarter of 2022, down from RMB1,600.4 million in Q2 2022 and down by 30.2% from Q3 2021. The decline in sales of total computing power and the lower selling price were the major causes of the fall.
Additionally, in the sector of product revenue, AI revenue went from RMB1.6 million in Q2 2022 to an amount of RMB2.4 million (US$0.3 million) in Q3 2022.
Mining revenue for the 3rd Quarter of 2022 totaled RMB62.0 million (US$8.7 million), increased by 19.0% from the 2nd Quarter of 2022 and 1,002.7% compared to Q3 2021. The gains were primarily due to better mining machine electrical supply and higher computational power used for mining, as per the press release.
Gross profit fell by 74.8% from the second quarter of 2022 to RMB234.2 million (US$32.9 million) in the third quarter of 2022. While overall operating expenses in Q3 2022 increased by 1.7% from Q2 2022 to RMB275.0 million, or $38.7 million.
Furthermore, RMB608.9 million in net income from the second quarter of 2022 fell to RMB61.1 million, or $8.6 million, a 90.0% decline.
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