Canaan reports better-than-expected revenue in Q2

• Canaan Inc. (NASDAQ: CAN) has launched its Q2 monetary report exhibiting a rise in mining income.
• The Bitcoin miner’s whole income rose to $73.9 million, growing by 33.7% in comparison with Q1, 2023.
• Canaan reportedly held 1125 bitcoins as of June 30, 2023.

Canaan Inc. (NASDAQ: CAN), one of many main Bitcoin mining firms, has reported its unaudited monetary outcomes for Q2, 2023. Based on the report, income from BTC mining jumped 43.3% quarter-on-quarter, from $11.1 million to $15.9 million.  

In the meantime, whole revenues rose to $73.9 million within the quarter, 33.7% up on Q1 revenues of $55.2 million. Nevertheless, with the crypto market nonetheless heaving from the bear market influence, Canaan’s second quarter income is considerably decrease in comparison with the $245.9 million reported in Q1, 2022.

Commenting on the monetary outcomes, Canaan CEO Nangeng Zhang, stated in a press release: 

“We navigated the challenges within the second quarter of 2023, surpassing our topline steerage to realize $73.9 million in income. Regardless of the comparatively stagnant bitcoin value within the second quarter, our endeavor to drive gross sales throughout varied fronts, together with main shoppers, channels, and retail, yielded encouraging outcomes. This effort propelled our whole computing energy bought to a outstanding 6.1EH/s, up 44% sequentially.”

Canaan held 1,125 bitcoins

Based on Mr. Zhang, the corporate benefited from its collaboration with channel shoppers, and noticed its on-line retail retailer appeal to new shoppers from throughout the globe.  The agency has lately appeared to cement its footprint within the sector, organising mining ventures in Africa and South America.

As famous above, Canaan bought 6.1 million Thash/s – this up from 4.2 million Thash/s in Q1, 2023. The corporate had bought a complete of 5.5 million Thash/s in Q1, 2022.

CFO James Jin Cheng acknowledged: “Within the second quarter of 2023, we noticed enchancment in each our gross sales and mining actions, which contributed to our better-than-expected income efficiency. Regardless of a lower in common promoting value, our product gross sales grew by 31.3% quarter over quarter, pushed by will increase in whole computing energy bought.”

Whereas the corporate expects Q3 income to say no to $30 million owing to the market situations, web loss in Q2 was $110.7 million, in comparison with $84.4 million in Q1. The corporate had seen a web revenue of $90.1 million throughout the identical quarter in 2022.

Per the report, Canaan held 1,125 bitcoins price $28.8 million as of June 30, 2023. The corporate owned 747 of those bitcoins, whereas 378 BTC was from buyer deposits. Impairment on the crypto in Q2 was $2.4 million, in comparison with $0 in Q1 and $4.5 million in Q2, 2022.