Bitcoin ASIC producer Canaan noticed 82% earnings drop in This fall


In keeping with 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 earnings lowered by way of 82.1% Y/Y to $56.8 million in This fall 2022. Right through the quarter, Canaan offered 1.9 million terahash in step with 2d value of computing energy for Bitcoin mining, now not accounting for decrease ASIC costs, representing a 75.8% decline from This fall 2021. 

On the identical time, Canaan’s mining earnings stepped forward 368.2% 12 months over 12 months to $10.46 million. As advised by way of Nangeng Zhang, chairman and CEO of Canaan:

“To mitigate call for dangers throughout the marketplace downturn, we have now been diligently making improvements to and growing our mining industry. Our efforts yielded extra development in early 2023 with 3.8 EH/s hash fee 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 numerous geographic areas that provide effective prerequisites.”

In spite of the section’s luck, then again, Canaan’s internet source of revenue swung to a $63.6 million loss in This fall 2022 in comparison to a benefit of $182.0 million in This fall 2021. As advised by way of Jin Cheng, Leader monetary officer of Canaan, the loss used to be because of stock write-downs and analysis bills associated with its new fleet of ASICs.

“Bearing in mind very comfortable marketplace call for and occasional promoting value, we incurred an extra stock write-down of RMB205.3 million, which additionally dampened our gross margin. Together with one-time upper analysis and construction bills when it comes to the tape-out for our A13 collection, our final analysis suffered losses throughout the quarter.”

For the total 12 months, the company’s earnings lowered by way of 13.8% to $634.9 million, basically because of higher trade prerequisites in Q1 and Q2 2022. The company lately has $706 million in overall property in comparison to $67 million in overall liabilities.