Canaan, a Chinese language producer of application-specific built-in circuit (ASIC) mining machines for Bitcoin, reported an 82% drop in income in This autumn 2022, in accordance with a submitting with the USA Securities and Trade Fee on March 7.
Canaan revenues fall
The quarterly dip was precipitated by a 14% drop for the yr.
In This autumn 2022, Canaan reported promoting greater than 1.9 million terahashes per second price of computing energy for Bitcoin mining, representing a 75.8% decline from the identical quarter within the earlier yr, not accounting for decrease ASIC costs.
Canaan’s mining income, then again, improved 368.2% year-over-year to $10.46 million.
In accordance with Nangeng Zhang, chairman and CEO of Canaan:
“We went by a tricky fourth quarter because the additional sinking Bitcoin worth throughout the quarter led to lackluster market demand for mining machines as we anticipated.”
The CEO added, “to mitigate demand dangers throughout the market downturn, we’ve been diligently enhancing and creating our mining enterprise.”
Zhang talked about particularly efforts to yield extra progress in early 2023, with the agency hitting its purpose of three.8 EH/s hash charge for mining at of the tip of February.
“We attempt to endure the current arduous interval whereas concurrently positioning ourselves for the market’s resurgence. Accordingly, we’ve made decisive investments in bolstering our manufacturing capability and increasing our mining operations to extra diverse geographic areas that provide advantageous circumstances. We consider the expansion of those high-quality property will convey us super bitcoin rewards and considerably admire in worth when the bitcoin worth will increase.”
Canaan’s ASIC expertise
Canaan’s extremely sought-after Bitcoin mining chip, ASIC, was among the many first to achieve mass manufacturing in 2013. In 2018, Canaan made historical past by unveiling the world’s first 7nm ASIC chip, providing energy-efficient computing gear to the cryptocurrency mining sector.
That very same yr, the corporate launched the world’s first industrial edge AI chip based mostly on RISC-V structure, leveraging the facility of ASIC expertise to advance high-performance computing and synthetic intelligence.
Regardless of the challenges of the macro market surroundings, Zhang added that 2022 was a notable yr for the publicly traded firm.
“We expanded globally and established abroad provide chains and headquarters in Singapore. Our groups gained expertise in working our mining enterprise in varied abroad places. We now have additionally debuted our new mining machine sequence incorporating the most recent cutting-edge course of node, driving our computing energy and effectivity to a brand new stage.”
In 2022, the corporate additionally introduced increasing crypto mining operations in Kazakhstan. Canaan entered into a number of strategic operations with a number of crypto mining corporations after China introduced its crack down on crypto mining.
The hope now appears that Canaan can leverage its intensive understanding of the trade cycle to convey firm income again up, “we’re assured of overcoming challenges and capturing extra market alternatives within the rising bitcoin cycle.”
