In line with a brand new filing with the USA Securities and Alternate Fee on March 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% year-over-year to $56.8 million in This fall 2022. Throughout the quarter, Canaan offered 1.9 million terahashes per second price of computing energy for Bitcoin mining, not accounting for decrease ASIC costs, representing a 75.8% decline from This fall 2021.
On the identical time, Canaan’s mining income improved 368.2% year-over-year to $10.46 million. As advised by Nangeng Zhang, chairman and CEO of Canaan:
“To mitigate demand dangers throughout the market downturn, we’ve been diligently bettering and creating our mining enterprise. Our efforts yielded extra progress in early 2023 with 3.8 EH/s hash price put in for mining as of the top of February. Accordingly, we’ve made decisive investments in bolstering our manufacturing capability and increasing our mining operations to extra diverse geographic areas that supply advantageous circumstances.”
Regardless of the section’s success, nevertheless, Canaan’s web earnings swung to a $63.6-million loss in This fall 2022 in comparison with a revenue of $182.0 million in This fall 2021. As advised by Jin Cheng, chief monetary officer of Canaan, the loss was on account of stock write-downs and analysis bills associated to its new fleet of ASICs:
“Contemplating very delicate 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 sequence, our backside line suffered losses throughout the quarter.”
For the complete yr, the agency’s income decreased by 13.8% to $634.9 million, primarily on account of higher business circumstances in Q1 and Q2 2022. The agency presently has $706 million in complete property in comparison with $67 million in complete liabilities.