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Canaan Feels the Bitcoin Blues. Earnings Down 90%

Canaan Inc. ( NASDAQ: CAN), a cryptocurrency mining hardware maker, reported its quarterly numbers on Monday. Throughout the three-month duration that ended on 30 September 2022, the computing services supplier attained an earnings of $1375 million, representing a decline compared to the last quarter and the exact same duration a year previously.

The business’s profits dropped more than 40% quarter-over-quarter (QoQ) and 26% year-over-year (YoY). The earnings devaluation was a lot more severe and the numbers dropped 90% QoQ to $8.6 million.

The slump is straight associated to decreasing success in the mining market, which equated into the sale of less bitcoin and other cryptocurrency mining gadgets. Overall computing power offered by Canaan throughout the last quarter reached 3.5 million tera hashes per second (TH/s), reducing by 37.1% compared to 5.5 million TH/s offered a quarter prior to.

” The bitcoin mining market degraded throughout the 3rd quarter, as the bitcoin rate changed and additional dipped to around sixteen thousand dollars just recently. The unfavorable market characteristics have actually considerably impeded bitcoin miners’ profits and capital. As miners are required to cut their need for calculating power, we needed to change down our offering cost in action,” Nangeng Zhang, the Chairman and Chief Executive Officer of Canaan, commented.

” Looking forward, we deal with an extremely difficult market duration as the bitcoin rate is sinking to lows the marketplace has actually not seen in 2 years. Our concern is to save our money, reduce our expenditures, and sustain this market recession.”

Canaan utilizes the duration of extended ‘cryptocurrency winter season’ to establish brand-new tools to increase miners’ efficiency and success. The business provided a brand-new mining device series throughout the last quarter, called AvalonMade13 As a part of the advancement technique, the maker broadened its Singapore base of experts and mining company by designating its makers to the United States.

Crypto Miners in Growing Pain

For Canaan, crypto mining profits are simply a small part of overall incomes. The quarterly outcomes of public-listed business making their dollar generally on digital properties mining operations reveal intensifying issues and monetary discomfort.

Hut 8 Mining Corp. ( HUT), among the leading cryptocurrency miners, reported its quarterly numbers recently and revealed a high decrease in income of 63% from CAD 50.3 million to CAD 18.6 million.

The business’s shares have actually lost about 80% because the start of the year, together with other openly traded miners, like HIVE Blockchain Technologies Ltd. ( HIVE) or Riot Blockchain Inc. ( RIOT). Canaan is slipping by ‘just’ 48% year-to-date (YTD), while bitcoin itself is losing 64% and is presently trading listed below $17,000

Canaan Inc. ( NASDAQ: CAN), a cryptocurrency mining hardware producer, reported its quarterly numbers on Monday. Throughout the three-month duration that ended on 30 September 2022, the computing services service provider attained an earnings of $1375 million, representing a reduction compared to the last quarter and the very same duration a year previously.

The business’s incomes dropped more than 40% quarter-over-quarter (QoQ) and 26% year-over-year (YoY). The earnings devaluation was much more severe and the numbers dropped 90% QoQ to $8.6 million.

The recession is straight associated to decreasing success in the mining market, which equated into the sale of less bitcoin and other cryptocurrency mining gadgets. Overall computing power offered by Canaan throughout the last quarter reached 3.5 million tera hashes per second (TH/s), reducing by 37.1% compared to 5.5 million TH/s offered a quarter prior to.

” The bitcoin mining market degraded throughout the 3rd quarter, as the bitcoin cost changed and more dipped to around sixteen thousand dollars just recently. The unfavorable market characteristics have actually considerably prevented bitcoin miners’ earnings and capital. As miners are required to cut their need for calculating power, we needed to change down our offering cost in action,” Nangeng Zhang, the Chairman and Chief Executive Officer of Canaan, commented.

” Looking forward, we deal with a really difficult market duration as the bitcoin cost is sinking to lows the marketplace has actually not seen in 2 years. Our concern is to save our money, lessen our expenditures, and withstand this market recession.”

Canaan utilizes the duration of extended ‘cryptocurrency winter season’ to establish brand-new tools to increase miners’ efficiency and success. The business provided a brand-new mining device series throughout the last quarter, called AvalonMade13 As a part of the advancement method, the maker broadened its Singapore base of specialists and mining service by designating its makers to the United States.

Crypto Miners in Growing Pain

For Canaan, crypto mining earnings are simply a small part of overall profits. The quarterly outcomes of public-listed business making their dollar primarily on digital properties mining operations reveal aggravating issues and monetary discomfort.

Hut 8 Mining Corp. ( HUT), among the leading cryptocurrency miners, reported its quarterly numbers recently and revealed a high decrease in income of 63% from CAD 50.3 million to CAD 18.6 million.

The business’s shares have actually lost about 80% given that the start of the year, together with other openly traded miners, like HIVE Blockchain Technologies Ltd. ( HIVE) or Riot Blockchain Inc. ( RIOT). Canaan is slipping by ‘just’ 48% year-to-date (YTD), while bitcoin itself is losing 64% and is presently trading listed below $17,000

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