Bitcoin ban doesn’t stop Chinese mining firm Canaan Inc from doubling revenue

    Despite China’s restriction on cryptocurrency mining and transaction operations, Canaan Inc., a Chinese cryptocurrency mining behemoth and supplier of computer resources, has generated a revenue that is greater than projected.

    The firm said that its overall sales came in at RMB1,652.7 million ($246.7 million), a number that reflected a rise of 21.9% from the RMB1,356.1 million it recorded in the first quarter of 2022. In other words, the company’s revenues increased by $26.7 million. This staggering amount of money also represents a growth of 52.8% when compared to the RMB1,081.8 million that was generated during the same time period in 2021.

    The precipitous drop in Canaan Inc.’s processing power during the second quarter was the aspect of the company’s financial performance that was most startling to observers. According to the data that was made public, the total amount of computing power that was sold was 5.5 million Thash/s. This represents an increase of 27.5% from the 4.3 million Thash/s that was sold in the first quarter of 2022 but a decrease of 7.7% from the 5.9 million Thash/s that was sold in the same period of 2021.

    Canaan Inc is a Chinese corporation with its headquarters in Beijing, and it participates in public trading on the Nasdaq Global Select Market. However, it is a Chinese firm. Despite the hostility of the Chinese government toward crypto activities as well as the overall impact of the crypto winter, the company’s performance during the second quarter did not really show any form of dearth in operations and revenue. This was the case even though the firm was operating in China.

    “The strong topline performance was essentially the consequence of the sequentially increased computing power sold as well as the comparatively high average selling price we secured with contract sales from prior quarters when the price of Bitcoin was at a higher level,” Canaan’s Chief Financial Officer, James Jin Cheng, said that the company dropped the price of its products for spot sales in response to the continued decline in the price of bitcoin during the second quarter. This was done to help shoulder the strain with their customers.

    Canaan’s financials indicate that it has positive cash flow, but the situation was noticeably different for other key stakeholders in the cryptocurrency mining ecosystem, such as Core Scientific, which sold more of its mined BTC to offset some of its debts and liabilities. Canaan’s financials show that the company is cash flow positive.

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