In accordance with a brand new filing with america 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 autumn 2022. In the course of 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 autumn 2021.
On the similar time, Canaan’s mining income improved 368.2% year-over-year to $10.46 million. As instructed by Nangeng Zhang, chairman and CEO of Canaan:
“To mitigate demand dangers throughout the market downturn, we now have been diligently enhancing and growing our mining enterprise. Our efforts yielded extra progress in early 2023 with 3.8 EH/s hash charge put in for mining as of the tip of February. Accordingly, we now have made decisive investments in bolstering our manufacturing capability and increasing our mining operations to extra diversified geographic areas that supply advantageous circumstances.”
Regardless of the section’s success, nevertheless, 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 instructed by Jin Cheng, chief monetary officer of Canaan, the loss was attributable to stock write-downs and analysis bills associated to its new fleet of ASICs:
“Contemplating very comfortable market demand and low promoting worth, we incurred an extra stock write-down of RMB205.3 million, which additionally dampened our gross margin. Along side one-time larger analysis and growth bills regarding the tape-out for our A13 collection, our backside line suffered losses throughout the quarter.”
For the complete 12 months, the agency’s income decreased by 13.8% to $634.9 million, primarily attributable to higher business circumstances in Q1 and Q2 2022. The agency at present has $706 million in complete property in comparison with $67 million in complete liabilities.