Canaan stock surges as Q3 revenue doubles on Bitcoin miner demand

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Shares successful Canaan surged connected Tuesday aft the Bitcoin mining hardware shaper reported its third-quarter revenues doubled from past year, driven by a precocious request for instrumentality arsenic aggregate miners saw revenues increase.

Canaan said connected Tuesday that its full Q3 revenues accrued 104% from past twelvemonth to $150.5 cardinal owed to a “substantial measurement of caller orders,” with its mining equipment revenues making up the lion’s stock astatine $118.6 million.

James Jin Cheng, the miner’s main fiscal officer, said successful the company’s net telephone that a ample fig of income came from clients successful the US, who “started actively placing sizable and repeating orders.”

“Sales of North American customers contributed 31% of our full gross successful 4th three. We are blessed to witnesser the beardown request betterment of the North American market,” helium added.

Other miners person besides been reporting beardown earnings. HIVE Digital reported a 285% net increase connected Monday, portion BitFuFu doubled its third-quarter revenue disconnected the backmost of request for unreality mining and instrumentality arsenic miners sought to capitalize connected the rising terms of Bitcoin.

Canaan shares leap connected earnings

Shares successful Canaan (CAN) closed trading connected Tuesday up astir 21% to $1.03 connected the company’s earnings, with gains extending by astir 2% aft the doorbell to $1.05.

Canaan’s banal is down astir 50% this twelvemonth arsenic galore Bitcoin miners person pivoted to powering artificial intelligence, arsenic the cost and trouble of mining person accrued portion Bitcoin’s terms has fallen.

The institution reported it made $30 cardinal successful mining gross implicit Q3, up 241% twelvemonth implicit year, and a nett nonaccomplishment of $27 cardinal compared to $75 cardinal a twelvemonth ago.

Canaan mined 267 Bitcoin (BTC) astatine an mean gross of $114,485 per coin and accrued its holdings to 1,610 Bitcoin by the extremity of October.

CEO pitches Bitcoin mining arsenic the champion mode to earn

Canaan CEO Nangeng Zhang told investors connected an net telephone that immoderate miners facing equilibrium expanse unit and stock terms show issues are shifting toward AI, reducing mining operations implicit the mean term.

However, helium inactive thinks Bitcoin mining is simply a viable enactment portion the modulation is underway, due to the fact that the deployment of AI infrastructure takes time.

“Our customers, including ourselves, are reasoning astir however to physique AI-ready mining facilities for the future,” helium said. “At this stage, deploying much Bitcoin miners is inactive the champion mode to allocate vigor contiguous and make revenues from this date, not waiting for different 1 oregon 2 oregon 3 years.”

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