Cryptocurrency

Bitcoin miner Canaan seeks to expand operations despite decline in Q3 revenue

bitcoin miner canaan report Third quarter results declined, with revenue down 25.8% year-on-year.

Non-GAAP net income for the third quarter was $23.4 million, down 71.7% from the same period in 2021. The company’s revenue for the third quarter of 2022 was $137.5 million.

However, mining revenue for Q3 2022 was $8.7 million, an increase of 1,002.7% compared to Q3 2021.

Chairman and CEO Nangeng Zhang said:

“Negative market dynamics have significantly hampered Bitcoin miner revenues and cash flow. Miners have been forced to reduce their demand for computing power and have had to lower their selling prices accordingly.”

Similarly, CFO James Jin Cheng expects market conditions to continue to deteriorate over the next two quarters due to Bitcoin’s downward trajectory, rising energy prices and increasing pressure on miners’ cash. claims.

However, Cheng said Canaan will step up its cash management to seize more opportunities when the market recovers.

Expansion plan

The company plans to expand even though Canaan’s latest financial reports show a downward trend. Canaan continues to expand its R&D projects and mining operations around the world. Mr. Zhang said:

“[A]This is part of our ongoing effort to strengthen our R&D capabilities, expanding our Singapore headquarters with promising local R&D talent to support our business on a global scale. In addition, we expanded our mining business by leveraging the United States to optimize the allocation of mining machines. “

However, Zhang claims the industry is facing a very difficult time as “the price of bitcoin has fallen to a low the market has not seen in two years.”

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