Canaan Inc. (NASDAQ: CAN), one of the leading Bitcoin mining companies, released its Q2 financial report showing growth in mining revenue. The total revenue increased to $73.9 million, 33.7% higher than the previous quarter.
The Bitcoin miner held 1,125 bitcoins worth $28.8 million as of June 30, 2023. Revenue from BTC mining jumped 43.3% quarter-on-quarter, from $11.1 million to $15.9 million. Despite the crypto market still suffering from the bearish impact, total revenue was significantly lower than the $245.9 million reported in Q1, 2022.
Commenting on the financial results, Canaan CEO Nangeng Zhang said: “We navigated the challenges in the second quarter of 2023, surpassing our topline guidance to achieve $73.9 million in revenue. Despite the relatively stagnant bitcoin price in the second quarter, our endeavor to drive sales across various fronts, including major clients, channels, and retail, yielded encouraging results. This effort propelled our total computing power sold to a remarkable 6.1EH/s, up 44% sequentially.”
The company benefited from its collaboration with channel clients and increased sales in its online retail store. It also set up mining ventures in Africa and South America. CFO James Jin Cheng noted: “In the second quarter of 2023, we observed improvement in both our sales and mining activities, which contributed to our better-than-expected revenue performance. Despite a decrease in average selling price, our product sales grew by 31.3% quarter over quarter, driven by increases in total computing power sold.”
Despite the positive growth, the company expects Q3 revenue to decline to $30 million due to market conditions. Net loss in Q2 was $110.7 million, compared to $84.4 million in Q1. Impairment on the crypto was $2.4 million, compared to $0 in Q1 and $4.5 million in Q2, 2022.
