According to a new filing with the U.S. Securities and Exchange Commission on March 7, Canaan, a Chinese bitcoin (BTC) miner and maker of application-specific integrated circuit (ASIC) mining machines, reported that its revenue increased by 82.1% have sunk. Y to $56.8 million in Q4 2022. During the quarter, Canaan sold 1.9 million terahashes of computing power per second for bitcoin mining, excluding lower ASIC prices, a decrease of 75.8% compared to Q4 2021.
At the same time, Canaan’s mining revenue increased 368.2% year over year to $10.46 million. As Nangeng Zhang, Chairman and CEO of Canaan, said:
“To mitigate demand risks during market downturns, we have carefully enhanced and evolved our mining business. Our efforts led to further advances in early 2023, when a 3.8 EH/s hash rate was installed for mining at the end of February. Accordingly, we have made critical investments to strengthen our production capacity and expand our mining operations into more diverse geographic regions with favorable conditions.”
However, despite the segment’s success, Canaan’s net income swung to a loss of $63.6 million in the fourth quarter of 2022, compared to a profit of $182.0 million in the fourth quarter of 2021. As Jin Cheng, Chief Canaan’s financial officer said the loss was due to inventory write-downs. Downtime and research costs associated with its new fleet of ASICs.
“Given the very weak market demand and low selling price, we had to record an additional inventory write-down of RMB 205.3 million, which also weighed on our gross margin. Our A13 series suffered a loss in the quarter.”
For the full year, the company’s revenue fell 13.8% to $634.9 million primarily due to better industry conditions in the first and second quarters of 2022. The company currently has total assets of $706 million compared to 67 million dollars in total liabilities.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.