Bitcoin ASIC producer Canaan noticed 82% income drop in This fall

Based on a brand new submitting with the U.S. Securities and Change 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 fall 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 fall 2021. 

On the identical time, Canaan’s mining income improved 368.2% 12 months over 12 months to $10.46 million. As informed by Nangeng Zhang, chairman and CEO of Canaan:

“To mitigate demand dangers throughout the market downturn, we now have been diligently bettering 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 diverse geographic areas that supply advantageous circumstances.”

Regardless of the section’s success, nonetheless, Canaan’s web revenue swung to a $63.6 million loss in This fall 2022 in comparison with a revenue of $182.0 million in This fall 2021. As informed 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 mushy market demand and low promoting value, we incurred an extra stock write-down of RMB205.3 million, which additionally dampened our gross margin. Along with one-time greater 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 the moment has $706 million in whole property in comparison with $67 million in whole liabilities.