Canaan’s Third Quarter Revenue Drops Sharply Amid Falling Market

The challenging cryptocurrency market has also impacted Canaan, a manufacturer of Bitcoin (BTC) mining equipment, which resulted in a decline in net income, revenue, and computing power sold in the third quarter of this year.

Canaan said third-quarter net income increased 88% from the prior year to 61.1 million yuan ($8.6 million) despite unfavorable market conditions and a drop in the price of Bitcoin to about $16,000 in the FTX event.

From 5.5 million Thash/s in the second quarter of 2022, the total computing power sold fell by 48.5% to 3.5 million Thash/s, a fall of 37.1%. According to a statement released by the Beijing-based company, revenue dropped 26% to 978.2 million yuan.

Mr. Nangeng Zhang, Chairman and Chief Executive Officer of Canaan, stated:

“The Bitcoin mining market deteriorated during the third quarter, as the Bitcoin price fluctuated and further dipped to around sixteen thousand dollars recently. 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.”

Not only Canaan but several companies in the Bitcoin mining industry are also still having problems, such as Compute North, Core Scientific, or Argo Blockchain.

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