Chinese Mining Firm Canaan Inc Doubles Revenue Despite Bitcoin Ban
Canaan Inc, a Chinese cryptocurrency mining giant and computing resource provider, has reported a better than expected revenue, despite the ban on crypto mining and transaction activities in China.
As announced by the company, its total revenues came in at RMB1,652.7 million ($246.7 million), a figure that represented an increase of 21.9% from the RMB1,356.1 million it reported in the first quarter of 2022. This impressive revenue also comes in as a 52.8% increase from the RMB1,081.8 million recorded in the same period of 2021.
What was most striking about Canaan Inc's revenue is the fact that its computing power plunged lower in the second quarter. Per the figures published, the total computing power sold was 5.5 million Thash/s, representing an increase of 27.5% from 4.3 million Thash/s in the first quarter of 2022 and a decrease of 7.7% from 5.9 million Thash/s in the same period of 2021.
Though it is trading publicly on the Nasdaq Global Select Market, Canaan Inc is a Chinese company with its headquarters in Beijing. The firm’s Q2 performance has not really shown any form of dearth in operations and revenue despite the hostility of the Chinese government towards crypto activities as well as the overall impact of the crypto winter.
“The solid topline performance primarily resulted from the sequentially increased computing power sold and relatively high average selling price we secured with contract sales from previous quarters where the Bitcoin price was at a higher level. As the Bitcoin price further decreased in the second quarter, we responsively lowered our product price for spot sales to shoulder the pressure with our clients,” said James Jin Cheng, Chief Financial Officer of Canaan.
While Canaan’s financials show it is cash flow positive, the situation was notably different for other key stakeholders in the crypto mining ecosystem like Core Scientific, which sold more of its mined BTC to offset some of its debts and liabilities.
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