Chinese language cryptocurrency mining agency Canaan will proceed to increase operations regardless of the continued bear market and an related drop in earnings, based on the corporate’s CEO.
Canaan posted a 90% over-the-quarter lower in internet earnings in Q3 2022, the agency formally announced on Nov. 14. The agency’s Q3 internet earnings amounted to 61.1 million renminbi (RMB), or $8.6 million, which is a 88% lower from the identical interval in 2021, Canaan famous.
The corporate’s revenues dropped about 41% from 1.7 million RMB ($230,000) in Q2 2022, whereas gross revenue plummeted 75% from 940 million RMB ($130 million) posted within the earlier quarter.
Amid Bitcoin (BTC) mining becoming less profitable because of the crypto winter, Canaan’s mining units have additionally skilled a major decline in demand. In keeping with the newest financials, Canaan bought a complete 3.5 million terahashes per second (Th/s) of computing energy in Q3, or 37% lower than within the earlier quarter.
Regardless of a downward development in its newest monetary report, Canaan doesn’t plan to decelerate the corporate’s development. Quite the opposite, Canaan continues to scale its operations internationally, together with analysis and improvement initiatives in addition to mining operations, CEO Nangeng Zhang stated.
“As a part of our ongoing effort to strengthen our analysis and improvement capabilities, we’re increasing our Singapore headquarters with promising native analysis and improvement skills to assist help our enterprise on a worldwide scale,” Zhang famous.
He additionally mentioned that Canaan has been increasing its mining enterprise in the US this yr, including:
“We face a really robust trade interval because the Bitcoin worth is sinking to lows the market has not seen in two years. Our precedence is to preserve our money, decrease our bills, and endure this market downturn.”
Aside from scaling worldwide, Canaan has been engaged on new mining options this yr. In October, Canaan formally released its new mining gadget collection, AvalonMade 13. The brand new collection relies on the superior application-specific built-in circuit expertise, together with two fashions that includes 110 Thash/s and 130 Thash/s hash charges.
Canaan didn’t instantly reply to Cointelegraph’s request for remark.
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“The launch of the brand new technology product reaffirms our confidence within the elementary worth of the Bitcoin ecosystem and displays our fixed efforts within the analysis and improvement of supercomputing expertise,” Zhang acknowledged.
As beforehand reported by Cointelegraph, Canaan posted a 117% increase in gross profit in Q2 2022 over the identical interval in 2021. The corporate nonetheless anticipated a deterioration in financials because of the ongoing bear market.
