Bitcoin ASIC producer Canaan noticed 82% income drop in This autumn

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In response to a brand new submitting with the U.S. Securities and Change 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 income decreased by 82.1% Y/Y to $56.8 million in This autumn 2022. In the course of the quarter, Canaan offered 1.9 million terahash per second price of computing energy for Bitcoin mining, not accounting for decrease ASIC costs, representing a 75.8% decline from This autumn 2021. 

On the identical time, Canaan’s mining income improved 368.2% 12 months over 12 months to $10.46 million. As instructed by Nangeng Zhang, chairman and CEO of Canaan:

“To mitigate demand dangers throughout the market downturn, we’ve been diligently enhancing and creating our mining enterprise. Our efforts yielded extra progress in early 2023 with 3.8 EH/s hash charge put in for mining as of the top of February. Accordingly, we’ve made decisive investments in bolstering our manufacturing capability and increasing our mining operations to extra assorted geographic areas that provide advantageous circumstances.”

Regardless of the phase’s success, nevertheless, Canaan’s internet revenue swung to a $63.6 million loss in This autumn 2022 in comparison with a revenue of $182.0 million in This autumn 2021. As instructed by Jin Cheng, Chief monetary officer of Canaan, the loss was attributable to stock write-downs and analysis bills associated to its new fleet of ASICs.

“Contemplating very smooth market demand and low promoting worth, we incurred a further stock write-down of RMB205.3 million, which additionally dampened our gross margin. Along with one-time increased analysis and growth bills referring to the tape-out for our A13 collection, our backside line suffered losses throughout the quarter.”

For the total 12 months, the agency’s income decreased by 13.8% to $634.9 million, primarily attributable to higher trade circumstances in Q1 and Q2 2022. The agency presently has $706 million in whole property in comparison with $67 million in whole liabilities.