U.Today - Canaan, a producer of legendary ASICs series Avalonminer and one of the largest corporate Bitcoin (BTC) miners, shared its unaudited Q2, 2023, report. Despite the amazing performance of all key metrics, the firm is still grappling with a challenging market context and, therefore, has failed to achieve the break-even point.
Canaan's BTC mining revenue more than doubled compared to Q2, 2022
In Q2, 2023, Canaan Inc. sold 6.1 million Thash/s in Bitcoin (BTC) mining power, which represents a 44.2% QoQ increase. Its own mining revenue totaled $15.9 million, demonstrating a 105% increased compared to a similar period in 2022, says its official Q2, 2023, released today.At the same time, the cost of revenues increased rapidly. In the last quarter, it reached $143.9 million, compared to $102.8 million in the first quarter of 2023 and $107.6 million in the same period of 2022. As a result, the company sees its gross losses increasing.
In Q2, 2023, Canaan bore $70.1 million in losses, which is equal to almost 48% QoQ increase. To provide context, a year ago, it logged a gross profit of $138.3 million.
Mr. Nangeng Zhang, chairman and chief executive officer at Canaan, stressed that the company finds its way through a rather challenging environment heavily affected by regulatory hostility:
The company also disclosed the structure of its incomes. Selling BTC miners remains the top focus for the company: net revenues consisted of $57.9 million in product revenue and only $15.9 million in mining revenue from owned farms.
Canaan is leaving Kazakhstan, here's why
James Jin Cheng, chief financial officer at Canaan, is optimistic about the results his company accomplished in the recent three months:In August 2023, Canaan unveiled that it was forced to abandon two Exahash/s of its mining computing power in Kazakhstan. The firm explained it with the regulatory crackdown.
Kazakhstan-based mining facilities were responsible for 50% of Canaan's hashrate in Central Asia and North America.
As covered by U.Today previously, the Central Asian country started to tighten the electricity distribution rules for Bitcoin (BTC) miners in December 2022.