Bitcoin miner Canaan reported a fall in the third-quarter results with revenue seeing a fall of 25.8% from the year-ago quarter.
Non-GAAP net income for the quarter was $23.4 million, a decrease of 71.7% from the same period in 2021. The company’s revenue for Q3 2022 was $137.5 million.
However, mining revenue in Q3 2022 was $8.7 million, representing an increase of 1,002.7% versus Q3 2021.
Chairman and CEO Nangeng Zhang said:
“The negative market dynamics have significantly hindered bitcoin miners’ revenues and cash flows. As miners are forced to cut their demand for computing power, we had to adjust down our selling price in response”
In the same vein, CFO James Jin Cheng asserts that the market conditions are expected to continue deteriorating in the next two quarters because of bitcoin’s downward trajectory, rising energy prices, and miners under increasing cash pressure.
Canaan will, however, tighten its cash management to capture more opportunities when the market recovers, says Cheng.
Plans for Expansion
The company plans to expand despite Canaan’s latest financial report showing a downward trend. Canaan will continue to expand its research and development projects and mining operations worldwide. Zhang said:
“[A]s part of our ongoing effort to strengthen our research and development capabilities, we are expanding our Singapore headquarters with promising local research and development talents to help support our business on a global scale. In addition, we have expanded our mining business by tapping into the U.S. to optimize the allocation of our mining machines. “
However, Zhang maintains that they are facing a very challenging industry period as the “bitcoin price is sinking to lows the market has not seen in two years.”