Daniel from Improve Press
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 increased 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 stoop.
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 right down to $46.3
million, representing a stoop 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 because of the lower in whole computing
energy offered and the decrease promoting worth because of the decreased worth of Bitcoin.
“We
went by 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 steerage vary, because of 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 great distance from
its report 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 yr for the whole 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 yr introduced considerably decrease revenue for the trade, declining by $6 billion.
As a
outcome, Canaan reported a big lower in income and gross revenue for
the complete yr 2022. Gross revenue decreased to $253.4 million from $411.2
million reported in 2021.
„Regardless of
the difficult market atmosphere, 2022 was a notable yr 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 price noting that Canaan at the moment tries to refocus its core enterprise,
transferring to sel-fmining quite than promoting mining rigs. The general mining
income for 2022 was considerably increased than the yr 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 fall 2022
outcomes final week, exhibiting a $90 million loss for the interval. Hive can be
on the lookout for methods to diversify its income, and based on a separate buying and selling
replace, it was in a position to 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 increased 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 stoop.
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 right down to $46.3
million, representing a stoop 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 because of the lower in whole computing
energy offered and the decrease promoting worth because of the decreased worth of Bitcoin.
“We
went by 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 steerage vary, because of 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 great distance from
its report 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 yr for the whole 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 yr introduced considerably decrease revenue for the trade, declining by $6 billion.
As a
outcome, Canaan reported a big lower in income and gross revenue for
the complete yr 2022. Gross revenue decreased to $253.4 million from $411.2
million reported in 2021.
„Regardless of
the difficult market atmosphere, 2022 was a notable yr 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 price noting that Canaan at the moment tries to refocus its core enterprise,
transferring to sel-fmining quite than promoting mining rigs. The general mining
income for 2022 was considerably increased than the yr 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 fall 2022
outcomes final week, exhibiting a $90 million loss for the interval. Hive can be
on the lookout for methods to diversify its income, and based on a separate buying and selling
replace, it was in a position to earn $180,000 from balancing the grid.
