Home Cryptocurrency Despite 82% drop in quarterly revenue, Bitcoin mining hardware manufacturer Canaan remains optimistic

Despite 82% drop in quarterly revenue, Bitcoin mining hardware manufacturer Canaan remains optimistic

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Canaan, a Chinese manufacturer of application-specific integrated circuit (ASIC) mining machines for Bitcoin, report Earnings fell 82% in the fourth quarter of 2022, according to a filing with the U.S. Securities and Exchange Commission on March 7.

Canaan’s income falls

The quarterly drop was driven by a 14% decline for the year.

In Q4 2022, Canaan reported selling more than 1.9 million terahashes per second of computing power for bitcoin mining.

Meanwhile, Canaan’s mining revenue increased by 368.2% year-on-year to $10.46 million.

Nangeng Zhang, Chairman and CEO of Canaan, said:

“We had a tough fourth quarter as market demand for mining machines was predictably lackluster as the bitcoin price fell further during the quarter.”

The CEO said, “We have diligently improved and developed our mining business to mitigate demand risks during market downturns.”

Zhang specifically mentioned efforts to make more progress in early 2023, with the company reaching its 3.8 EH/s hash rate mining target at the end of February.

“We are striving to withstand the current difficult times while at the same time preparing for the resurgence of the market. made a decisive investment to expand its mining operations in. The growth of these high-quality assets is expected to bring huge Bitcoin rewards and greatly increase in value as the price of Bitcoin rises. believe.”

Canaan’s ASIC technology

Canaan’s extremely popular bitcoin mining chip, the ASIC, was one of the first to reach mass production in 2013. In 2018, Canaan launched the world’s first his 7nm ASIC chip, making history by providing energy-efficient computing equipment to the cryptocurrency mining sector.

In the same year, the company unveiled the world’s first commercial edge AI chip based on RISC-V architecture, harnessing the power of ASIC technology to advance high-performance computing and artificial intelligence.

Despite the challenges of the macro market environment, Zhang added that 2022 was a remarkable year for listed companies.

“We have expanded globally, establishing an overseas supply chain and our headquarters in Singapore. Our team has gained experience operating mining operations in various locations overseas. We debuted a new series of mining machines incorporating process nodes, pushing computing power and efficiency to new levels.”

In 2022, the company also announced expansion of its cryptocurrency mining operations in Kazakhstan. After China announced its crackdown on crypto mining, Canaan launched several crypto mining companies and several strategic businesses.

It seems hopeful that Canaan can leverage its extensive understanding of industry cycles to restore corporate earnings.

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