Canaan’s mining revenue rises 3.3% in Q1 while overall revenue declines

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Bit­coin (BTC) min­er Canaan report­ed a 3.3% increase in its min­ing rev­enue for the first quar­ter, accord­ing to a May 26 state­ment.

Mining revenue

Accord­ing to Canaan, it gen­er­at­ed $11.1 mil­lion in min­ing rev­enue between Jan­u­ary 1 and March 31. This rep­re­sents a 3.3% increase from the $10.7 mil­lion it raised dur­ing the fourth quar­ter of 2022 and a 130.2% year-on-year increase.

The increased rev­enue coin­cid­ed with when the flag­ship dig­i­tal asset’s val­ue rebound­ed from the pre­vi­ous year’s loss. Dur­ing the first quar­ter, sev­er­al BTC min­ers record­ed improved finan­cial health as the asset saw a 70% increase.

Despite BTC’s hash rate and min­ing dif­fi­cul­ty reach­ing new all-time highs, Cryp­toSlate report­ed that pub­lic min­ers held steady as they expect­ed BTC’s val­ue to keep rising.

Mean­while, CEO Nan­geng Zhang said the firm remained com­mit­ted to expand­ing its min­ing busi­ness and intends to diver­si­fy its min­ing oper­a­tions across more countries.

The Bit­coin min­er said it held 623 BTC val­ued at $13.4 mil­lion as of March 31.

Overall revenue declined

Mean­while, the company’s over­all rev­enue fell to $55.2 mil­lion in 2023 Q1 from the $58.3 mil­lion record­ed in 2022 Q4.

The decline is more pro­nounced on the year-on-year met­ric as it gen­er­at­ed $201.8 mil­lion dur­ing the same peri­od in 2022.

Speak­ing on this decline, Canaan’s Chief Finan­cial Offi­cer, James Jin Cheng, said the firm expe­ri­enced a con­trac­tion in its sales because of the “the indus­try-wide reduc­tion in sell­ing prices, and unfore­seen delays in pay­ment and ship­ment fol­low­ing a series of U.S. bank failures.”

Addi­tion­al­ly, Cheng not­ed that the company’s min­ing unit “encoun­tered dif­fi­cul­ties that post­poned the increase of our installed hash rates.” All of these issues played a role in the reduced total revenues.

A break­down of the rev­enue showed that the firm scored $44.1 mil­lion from its prod­ucts, and $11.1 mil­lion from min­ing, while oth­er rev­enue accounts for $0.3 million.

Mean­while, Canaan said it sold more com­put­ing pow­er dur­ing the first quar­ter of 2023. The com­pa­ny sold 4.2 mil­lion Thash/s, far above the 1.9 mil­lion Thash/s record­ed in the fourth quar­ter of 2022.

Despite the decline, CFO Cheng said the com­pa­ny nar­rowed its oper­at­ing loss dur­ing the first quar­ter by 31.4%. Accord­ing to Cheng, this is a tes­ta­ment to the firm’s “dili­gent cost and expense con­trol” measures.

Post­ed In: Bit­coin, Min­ing

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