Canaan’s mining revenue rises 3.3% in Q1 while overall revenue declines

Bitcoin (BTC) miner Canaan reported a 3.3% increase in mining revenue in the first quarter, according to a report on May 26. statement.

mining revenue

Canaan generated $11.1 million in mining revenue from January 1 to March 31. This represents a 3.3% increase from the $10.7 million he raised in the fourth quarter of 2022, and a 130.2% increase year over year.

Earnings growth coincided with a time when the value of core digital assets rebounded from losses in the previous year. In the first quarter, assets increased his 70% and several of his BTC miners recorded improved financial health.

Despite BTC hashrate and mining difficulty reaching all-time highs, crypto slate Official miners expect the value of BTC to continue to rise and reported a stable stance.

Meanwhile, CEO Nangeng Zhang said the company continues to focus on expanding its mining business and intends to diversify its mining business in more countries.

Bitcoin Miner Says He Holds Worth 623 BTC $13.4 million as of March 31.

Overall revenue decreased

Meanwhile, the company’s overall revenue fell from $58.3 million in Q4 2022 to $55.2 million in Q1 2023.

The year-on-year decline is even more pronounced as it generated $201.8 million in the same period in 2022.

Canaan’s chief financial officer, James Jing Cheng, said of the decline, “The company’s sales have fallen due to industry-wide price cuts following a series of U.S. bank failures and unexpected delays in payments and shipments. reduced,” he said. “

In addition, Chen noted that the company’s mining division “encountered difficulties in postponing the increase in the installed hashrate.” All these issues contributed to the decline in total revenue.

The revenue breakdown showed $44.1 million from product, $11.1 million from mining, and $300,000 in other revenue.

Meanwhile, Canaan said it sold more computing power in the first quarter of 2023. The company sold his 4.2 million Thash/sec, well above his 1.9 million Thash/sec recorded in the fourth quarter of 2022.

Despite the decline, Chief Financial Officer Chen said operating loss narrowed by 31.4% in the first quarter. According to Cheng, this is evidence of the company’s “diligent cost and expense control” measures.