Canaan’s mining revenue rises 3.3% in Q1 while overall revenue declines

Bitcoin (BTC) miner Canaan reported a 3.3% improve in its mining income for the primary quarter, in keeping with a Might 26 statement.

Mining income

In accordance with Canaan, it generated $11.1 million in mining income between January 1 and March 31. This represents a 3.3% improve from the $10.7 million it raised in the course of the fourth quarter of 2022 and a 130.2% year-on-year improve.

The elevated income coincided with when the flagship digital asset’s worth rebounded from the earlier yr’s loss. In the course of the first quarter, a number of BTC miners recorded improved financial well being because the asset noticed a 70% improve.

Regardless of BTC’s hash price and mining problem reaching new all-time highs, CryptoSlate reported that public miners held regular as they anticipated BTC’s worth to maintain rising.

In the meantime, CEO Nangeng Zhang mentioned the agency remained dedicated to increasing its mining enterprise and intends to diversify its mining operations throughout extra international locations.

The Bitcoin miner mentioned it held 623 BTC valued at $13.4 million as of March 31.

General income declined

In the meantime, the corporate’s general income fell to $55.2 million in 2023 Q1 from the $58.3 million recorded in 2022 This autumn.

The decline is extra pronounced on the year-on-year metric because it generated $201.8 million throughout the identical interval in 2022.

Talking on this decline, Canaan’s Chief Monetary Officer, James Jin Cheng, mentioned the agency skilled a contraction in its gross sales due to the “the industry-wide discount in promoting costs, and unexpected delays in cost and cargo following a sequence of U.S. financial institution failures.”

Moreover, Cheng famous that the corporate’s mining unit “encountered difficulties that postponed the rise of our put in hash charges.” All of those points performed a task within the decreased whole revenues.

A breakdown of the income confirmed that the agency scored $44.1 million from its merchandise, and $11.1 million from mining, whereas different income accounts for $0.3 million.

In the meantime, Canaan mentioned it offered extra computing energy in the course of the first quarter of 2023. The corporate offered 4.2 million Thash/s, far above the 1.9 million Thash/s recorded within the fourth quarter of 2022.

Regardless of the decline, CFO Cheng mentioned the corporate narrowed its working loss in the course of the first quarter by 31.4%. In accordance with Cheng, this can be a testomony to the agency’s “diligent price and expense management” measures.

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