Canaan reports better-than-expected revenue in Q2

• Canaan Inc. (NASDAQ: CAN) has released its Q2 financial report showing an increase in mining revenue.
• The Bitcoin miner’s total revenue rose to $73.9 million, increasing by 33.7% compared to Q1, 2023.
• Canaan reportedly held 1125 bitcoins as of June 30, 2023.

Canaan Inc. (NASDAQ: CAN), one of the leading Bitcoin mining companies, has reported its unaudited financial results for Q2, 2023. According to the report, revenue from BTC mining jumped 43.3% quarter-on-quarter, from $11.1 million to $15.9 million.  

Meanwhile, total revenues rose to $73.9 million in the quarter, 33.7% up on Q1 revenues of $55.2 million. However, with the crypto market still heaving from the bear market impact, Canaan’s second quarter revenue is significantly lower compared to the $245.9 million reported in Q1, 2022.

Commenting on the financial results, Canaan CEO Nangeng Zhang, said in a press release: 

“We navigated the challenges in the second quarter of 2023, surpassing our topline guidance to achieve $73.9 million in revenue. Despite the relatively stagnant bitcoin price in the second quarter, our endeavor to drive sales across various fronts, including major clients, channels, and retail, yielded encouraging results. This effort propelled our total computing power sold to a remarkable 6.1EH/s, up 44% sequentially.”

Canaan held 1,125 bitcoins

According to Mr. Zhang, the company benefited from its collaboration with channel clients, and saw its online retail store attract new clients from across the globe.  The firm has recently looked to cement its footprint in the sector, setting up mining ventures in Africa and South America.

As noted above, Canaan sold 6.1 million Thash/s – this up from 4.2 million Thash/s in Q1, 2023. The company had sold a total of 5.5 million Thash/s in Q1, 2022.

CFO James Jin Cheng stated: “In the second quarter of 2023, we observed improvement in both our sales and mining activities, which contributed to our better-than-expected revenue performance. Despite a decrease in average selling price, our product sales grew by 31.3% quarter over quarter, driven by increases in total computing power sold.”

While the company expects Q3 revenue to decline to $30 million owing to the market conditions, net loss in Q2 was $110.7 million, compared to $84.4 million in Q1. The company had seen a net income of $90.1 million during the same quarter in 2022.

Per the report, Canaan held 1,125 bitcoins worth $28.8 million as of June 30, 2023. The company owned 747 of these bitcoins, while 378 BTC was from customer deposits. Impairment on the crypto in Q2 was $2.4 million, compared to $0 in Q1 and $4.5 million in Q2, 2022.