In step with a brand new submitting with the U.S. Securities and Alternate 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 earnings diminished by way of 82.1% Y/Y to $56.8 million in This fall 2022. All over the quarter, Canaan bought 1.9 million terahash consistent with 2nd price of computing energy for Bitcoin mining, now not accounting for decrease ASIC costs, representing a 75.8% decline from This fall 2021.
On the identical time, Canaan’s mining earnings advanced 368.2% 12 months over 12 months to $10.46 million. As instructed by way of Nangeng Zhang, chairman and CEO of Canaan:
“To mitigate call for dangers all over the marketplace downturn, we have now been diligently bettering and growing our mining industry. Our efforts yielded extra growth in early 2023 with 3.8 EH/s hash charge put in for mining as of the tip of February. Accordingly, we have now made decisive investments in bolstering our manufacturing capability and increasing our mining operations to extra numerous geographic areas that provide high quality stipulations.”
Regardless of the phase’s luck, alternatively, Canaan’s web source of revenue swung to a $63.6 million loss in This fall 2022 in comparison to a benefit of $182.0 million in This fall 2021. As instructed by way of Jin Cheng, Leader monetary officer of Canaan, the loss used to be because of stock write-downs and analysis bills associated with its new fleet of ASICs.
“Bearing in mind very cushy marketplace call for and coffee promoting worth, we incurred an extra stock write-down of RMB205.3 million, which additionally dampened our gross margin. Along with one-time upper analysis and building bills in the case of the tape-out for our A13 sequence, our base line suffered losses all over the quarter.”
For the entire 12 months, the company’s earnings diminished by way of 13.8% to $634.9 million, principally because of higher business stipulations in Q1 and Q2 2022. The company recently has $706 million in general property in comparison to $67 million in general liabilities.
