Canaan saw a 368.2% increase in mining income, to the tune of $10.46 million.
The firm’s net income shifted to a loss of $63.6 million in Q4 2022.
Canaan, a Chinese Bitcoin miner, and producer of application-specific integrated circuit (ASIC) mining devices, reported an annual decline in revenue of 82.1% to $56.8 million in its most recent filing with the United States Securities and Exchange Commission (SEC) on March 7.
In Q1 2022, Canaan reported a decrease in Bitcoin mining computing power sales of 75.8 percent from Q4 2021 due to reduced ASIC costs. This equates to 1.9 million terahashes per second. While this was going on, Canaan saw a 368.2% increase in mining income, to the tune of $10.46 million.
Net Loss of $63.6 Million
Canaan’s net income shifted to a loss of $63.6 million in Q4 2022 from a profit of $182.0 million in Q4 2021 despite the strength of the division. According to Canaan’s CFO Jin Cheng, the company’s loss was caused by the following factors: inventory write-downs; research and development costs associated with the development of the company’s new line of ASICs.
Canaan’s chairman and CEO, Nangeng Zhang stated:
“To mitigate demand risks during the market downturn, we have been diligently improving and developing our mining business. Our efforts yielded more progress in early 2023 with 3.8 EH/s hash rate installed for mining as of the end of February. Accordingly, we have made decisive investments in bolstering our production capacity and expanding our mining operations to more varied geographic regions that offer advantageous conditions.”
The company’s annual sales dropped by 13.8%, to $634.9 million, as a result of market circumstances in Q1 and Q2 2022. Now, the company’s assets are $706 million, while its liabilities are $67 million.