Canaan expects minor revenue drop in 2022 despite crypto mining crisis

Cryptocurrency mining big Canaan continues to generate vital revenues from crypto operations regardless of the continued crypto mining disaster.

Canaan’s complete income for the primary 9 months of 2022 was roughly 4 billion Chinese language yuan (RMB), or about $573 million, a spokesperson for Canaan informed Cointelegraph. Because the agency expects to generate one other 310 million RMB ($46 million) in This autumn, the full annual revenues is anticipated to quantity to 4.3 billion RMB ($619 million).

The quantity is down round 14% from Canaan’s RMB-denominated income of 4.9 billion RMB final yr. In USD, the full revenues have been down about 21% from $783 million in 2021.

Canaan’s 2022 annual revenues would nonetheless be considerably greater than in earlier years, surging almost 90% from 448 million RMB ($64 million) in 2020. In 2019, Canaan’s annual income amounted to 1.4 billion RMB ($201 million).

Canaan’s breakdown of income by companies. Supply: SEC report

Canaan’s monetary success over the previous few years comes after the corporate launched its personal mining operations, increasing companies past manufacturing crypto mining gadgets.

“We began our mining operations in mid-2021. Considered one of our issues is that when there’s a scarcity of mining machine demand, we will deploy a few of our stock into our mining operations to earn additional earnings,” Canaan mentioned. Beneath sure circumstances, Canaan is ready to resell their mining gear, the agency’s consultant acknowledged:

“We stability our machine utilization via mining, and our mining operation serves as a robust assist and complement to mining machine gross sales.”

The spokesperson declined to reveal extra particulars concerning the utilization and reselling of used mining gear.

Associated: Bitcoin ASIC miner costs hovering at lows not seen in years

The information comes amid the crypto mining business struggling a significant disaster, with 100% of public mining firms having to promote virtually all crypto they mined in 2022.

On Dec. 28, crypto mining agency Argo Blockchain offered flagship mining facility Helios to Galaxy Digital to be able to cut back its debt and enhance liquidity. Beforehand, crypto mining agency Core Scientific additionally filed for Chapter 11 chapter on Dec. 21 because of rising power prices.

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