Canaan Mining Revenue Up 3.3% in Q1 while Overall Revenue Falls

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

Mining income

According to Canaan, it generated $11.1 million in mining revenue between January 1 and March 31. That’s up 3.3% from the $10.7 million it raised in the fourth quarter of 2022, and up 130.2% year-over-year.

The increase in revenue coincided with a rebound in the value of the flagship Crypto asset from last year’s losses. In the first quarter, some BTC miners saw their financial situation improve as their assets grew by 70%.

Despite BTC’s hashrate and mining difficulty reaching all-time highs, CryptoSlate reports that public miners are holding steady as they expect BTC’s value to continue to rise.

Meanwhile, CEO Zhang Nangeng said that the company remains committed to expanding its mining operations and intends to diversify its mining operations in more countries.

The bitcoin miner said it held 623 bitcoins worth $13.4 million as of March 31.

overall revenue decline

Meanwhile, the company’s total revenue fell from $58.3 million in the fourth quarter of 2022 to $55.2 million in the first quarter of 2023.

The year-over-year metric decline is even more pronounced as it generates $201.8 million over the same period in 2022.

Commenting on the decline, Canaan’s chief financial officer, James Jin Cheng, said the company’s sales contracted due to “industry-wide lower selling prices, and a series of unexpected payments and shipments following the collapse of U.S. banks. Delay”

Additionally, Cheng noted that the company’s mining division “has encountered difficulties delaying the increase of our installed hash rate.” All of these issues have had an impact on overall revenue reduction.

The revenue breakdown shows that the company had $44.1 million in product revenue, $11.1 million in mining revenue, and $0.3 million in other revenue.

Meanwhile, Canaan said it sold more computing power in the first quarter of 2023. The company sold 4.2 million Thash/s, well above the 1.9 million Thash/s recorded in Q4 2022.

Despite the decline, Chief Financial Officer Cheng said the company’s operating loss narrowed 31.4 percent in the first quarter. Cheng said this was a testament to the company’s “diligent cost and expense control” measures.

Source of information: Compiled from CRYPTOSLATE by 0x Information.Copyright belongs to the author, without permission, may not be reproduced

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