Canaan’s mining revenue rises 3.3% in Q1 while overall revenue declines

Bitcoin (BTC) miner Canaan reported a 3.3% improve in its mining income for the primary quarter, in response to a Might 26 assertion.

Mining income

Based on Canaan, it generated $11.1 million in mining income between January 1 and March 31. This represents a 3.3% improve from the $10.7 million it raised throughout the fourth quarter of 2022 and a 130.2% year-on-year improve.

The elevated income coincided with when the flagship digital asset’s worth rebounded from the earlier yr’s loss. Throughout the first quarter, a number of BTC miners recorded improved monetary well being because the asset noticed a 70% improve.

Regardless of BTC’s hash charge and mining problem reaching new all-time highs, CryptoSlate reported that public miners held regular as they anticipated BTC’s worth to maintain rising.

In the meantime, CEO Nangeng Zhang stated the agency remained dedicated to increasing its mining enterprise and intends to diversify its mining operations throughout extra international locations.

The Bitcoin miner stated it held 623 BTC valued at $13.4 million as of March 31.

Total income declined

In the meantime, the corporate’s total income fell to $55.2 million in 2023 Q1 from the $58.3 million recorded in 2022 This fall.

The decline is extra pronounced on the year-on-year metric because it generated $201.8 million throughout the identical interval in 2022.

Talking on this decline, Canaan’s Chief Monetary Officer, James Jin Cheng, stated the agency skilled a contraction in its gross sales due to the “the industry-wide discount in promoting costs, and unexpected delays in cost and cargo following a collection of U.S. financial institution failures.”

Moreover, Cheng famous that the corporate’s mining unit “encountered difficulties that postponed the rise of our put in hash charges.” All of those points performed a job within the diminished whole revenues.

A breakdown of the income confirmed that the agency scored $44.1 million from its merchandise, and $11.1 million from mining, whereas different income accounts for $0.3 million.

In the meantime, Canaan stated it bought extra computing energy throughout the first quarter of 2023. The corporate bought 4.2 million Thash/s, far above the 1.9 million Thash/s recorded within the fourth quarter of 2022.

Regardless of the decline, CFO Cheng stated the corporate narrowed its working loss throughout the first quarter by 31.4%. Based on Cheng, it is a testomony to the agency’s “diligent price and expense management” measures.