Canaan expects minor revenue drop in 2022 despite crypto mining crisis

Cryptocurrency mining elephantine Canaan continues to make important revenues from crypto operations contempt the ongoing crypto mining crisis.

Canaan’s full gross for the archetypal 9 months of 2022 was astir 4 cardinal Chinese yuan (RMB), oregon astir $573 million, a spokesperson for Canaan told Cointelegraph. As the steadfast expects to make different 310 cardinal RMB ($46 million) successful Q4, the full yearly revenues is expected to magnitude to 4.3 cardinal RMB ($619 million).

The magnitude is down astir 14% from Canaan’s RMB-denominated gross of 4.9 cardinal RMB past year. In USD, the full revenues were down astir 21% from $783 cardinal successful 2021.

Canaan’s 2022 yearly revenues would inactive beryllium importantly bigger than successful erstwhile years, surging astir 90% from 448 cardinal RMB ($64 million) successful 2020. In 2019, Canaan’s yearly gross amounted to 1.4 cardinal RMB ($201 million).

Canaan’s breakdown of gross by services. Source: SEC report

Canaan’s fiscal occurrence implicit the past fewer years comes aft the institution launched its ain mining operations, expanding services beyond manufacturing crypto mining devices.

“We started our mining operations successful mid-2021. One of our considerations is that erstwhile determination is simply a shortage of mining instrumentality demand, we tin deploy immoderate of our inventory into our mining operations to gain other income,” Canaan said. Under definite circumstances, Canaan is capable to resell their mining equipment, the firm’s typical stated:

“We equilibrium our instrumentality usage done mining, and our mining cognition serves arsenic a almighty enactment and supplement to mining instrumentality sales.”

The spokesperson declined to disclose much details astir the usage and reselling of utilized mining equipment.

Related: Bitcoin ASIC miner prices hovering astatine lows not seen successful years

The quality comes amid the crypto mining manufacture suffering a large crisis, with 100% of nationalist mining companies having to sell astir each crypto they mined successful 2022.

On Dec. 28, crypto mining steadfast Argo Blockchain sold flagship mining installation Helios to Galaxy Digital successful bid to trim its indebtedness and amended liquidity. Previously, crypto mining steadfast Core Scientific besides filed for Chapter 11 bankruptcy connected Dec. 21 arsenic a effect of rising vigor costs.