In accordance with a brand new filing 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 income decreased by 82.1% Y/Y to $56.8 million in This autumn 2022. Throughout the quarter, Canaan bought 1.9 million terahash per second value of computing energy for Bitcoin mining, not accounting for decrease ASIC costs, representing a 75.8% decline from This autumn 2021.
On the similar time, Canaan’s mining income improved 368.2% yr over yr to $10.46 million. As informed by Nangeng Zhang, chairman and CEO of Canaan:
“To mitigate demand dangers through the market downturn, we’ve got been diligently bettering and creating our mining enterprise. Our efforts yielded extra progress in early 2023 with 3.8 EH/s hash fee put in for mining as of the tip of February. Accordingly, we’ve got made decisive investments in bolstering our manufacturing capability and increasing our mining operations to extra different geographic areas that supply advantageous circumstances.”
Regardless of the phase’s success, nonetheless, Canaan’s internet earnings swung to a $63.6 million loss in This autumn 2022 in comparison with a revenue of $182.0 million in This autumn 2021. As informed 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 smooth market demand and low promoting worth, we incurred a further stock write-down of RMB205.3 million, which additionally dampened our gross margin. Along with one-time larger analysis and growth bills referring to the tape-out for our A13 collection, our backside line suffered losses through the quarter.”
For the total 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 at the moment has $706 million in complete property in comparison with $67 million in complete liabilities.