Crypto mining rig maker Canaan shares slump after Q4 revenue sank 82%
Canaan’s shares on Nasdaq closed 3.83% decrease at US$2.51 on Wednesday after the cryptocurrency mining rig maker reported an 82% year-on-year drop in income on Tuesday for the fourth quarter of final 12 months. The corporate cited “lackluster market demand” for mining machines as the value of Bitcoin fell.
- Within the fourth quarter of 2022, the Nasdaq-listed firm booked 391.9 million yuan (US$56.8 million) in income, down 60% from the third quarter and a stoop of 82.1% from the identical interval in 2021.
- Canaan’s revenues for the complete 12 months got here in at 4.38 billion yuan, down from 4.99 billion yuan in 2021, primarily “because of the decline in whole computing energy bought,” the corporate mentioned.
- Canaan reported a internet revenue of 658.2 million yuan in 2022, in comparison with a internet revenue of two billion yuan in 2021.
- “We went by way of a troublesome fourth quarter because the additional sinking bitcoin worth through the quarter led to lackluster market demand for mining machines as we anticipated,” Nangeng Zhang, chairman and chief govt officer of Canaan, mentioned within the report. “To mitigate demand dangers through the market downturn, we have now been diligently bettering and creating our mining enterprise.”
- The mining rig maker mentioned it has been creating its personal Bitcoin mining enterprise “because the second engine to capitalize on the Bitcoin ecosystem” on high of its mining machine gross sales.
- As of the top of February, Canaan had put in computing energy totaling 3.8 exahashes per second (EH/s) for its mining operations in Central Asia and North America, and it’s ramping up the computing energy with a goal vary between 5 EH/s and 5.5 EH/s by the top of the primary quarter of this 12 months, in line with the report.