Canaan’s 2Q mining revenue jumps 43% on 1Q, but net loss climbs 31%

Bitcoin mining institution Canaan announced its unaudited fiscal results for Q2 2023, showing maturation successful computing powerfulness sold and BTC mining revenues portion it tackled a important nett nonaccomplishment of $110 million. up 31% connected Q1.

The NASDAQ-listed institution outlined a assortment of reasons influencing accrued revenues and a important headwind that included an inventory write-down and instrumentality impairment totaling $54 million.

Canaan recorded $73.9 cardinal successful gross successful Q2 2023, up from $55.2 cardinal quarter-on-quarter. This consisted of $57.9 cardinal from products gross and $15.9 cardinal successful Bitcoin mining revenue.

BTC mining revenues reflected 43.3% maturation compared to Q1’s $11.1 million, with Canaan’s 2023 Q2 much than doubling Q2 2022's $7.8 cardinal successful BTC mining revenues. The institution attributed this surge to the betterment successful Bitcoin prices and the consequent emergence successful Bitcoin rewards.

“The sequential summation was chiefly driven by the Bitcoin terms betterment and accrued Bitcoin rewards crossed the web during the quarter.”

Canaan besides reported important maturation successful its full computing powerfulness sold, reaching 6.1 cardinal Thash/s, up 45% quarter-on-quarter, with the assemblage becoming a large operator of gross for the company.

Canaan besides elaborate nett losses totalling $110.7 cardinal successful Q2, which it attributed to non-cash accruals and provisions reflecting changes successful selling prices, regulatory shifts, and spouse agreements.

Related: Bitcoin ASIC shaper Canaan saw 82% gross driblet successful Q4

Canaan CFO James Jin Cheng added that the losses included inventory write-down, proviso for committedness reserve and impairment of spot and instrumentality which totaled US$54.7 million.

“These non-cash accruals and provisions bespeak our information of the latest selling terms change, regularisation changes successful Kazakhstan, and the default by the spouse astatine a U.S. project, which did not power our currency flow.”

As of June 2023, Canaan’s listed cryptocurrency holdings included 1,125 BTC valued astatine US$28.8 million. 747 BTC are owned by Canaan, portion 378 BTC are attributed to lawsuit deposits.

Canaan besides reported that it had suspended 2.0 exahash/s of its mining computing powerfulness based successful Kazakhstan to guarantee ineligible compliance with the Rules for Licensing of Digital Mining Activities coming into effect.

The institution is successful the process of obtaining a specialized licence to proceed its operations and expects a simplification successful its Q3 BTC procreation arsenic a effect of the offline hardware.

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