Chinese Bitcoin mining firm Canaan reported a 90% quarter-over-quarter decline in net income in Q3 2022, yet the company is still operating.
According to the CEO of the company, operations will continue to grow at Chinese cryptocurrency mining startup Canaan despite the current bad market and a corresponding decline in earnings. Canaan’s third quarter of 2022 had a 90% decline in net profits year over year, the company formally reported on Nov. 14.
According to Canaan, the company’s Q3 net income was 61.1 million renminbi (RMB), or $8.6 million, down 88% from the same time in 2021. Revenues for the business decreased by about 41% from 1.7 million RMB ($230,000) in Q2 2022, and gross profit fell by 75% from 940 million RMB ($130 million) reported in the prior quarter.
The demand for Canaan’s mining equipment has significantly decreased as mining for Bitcoin ( BTC $17,111) has become less lucrative owing to the crypto winter. According to the most recent financial reports, the bitcoin mining firm sold 3.5 million terahashes per second (Th/s) of computing power in total in Q3, which is 37% less than in Q2.
Canaan does not intend to halt the expansion of the business, despite a decreasing trend in its most recent financial report. On the contrary, the bitcoin mining firm continues to scale its operations across the world, including research and development projects as well as mining operations, CEO Nangeng Zhang said.
“As part of our ongoing effort to strengthen our research and development capabilities, we are expanding our Singapore headquarters with promising local research and development talents to help support our business on a global scale,” Zhang noted.
He also mentioned that Canaan has been expanding its mining business in the United States this year, adding:
“We face a very tough industry period as the Bitcoin price is sinking to lows the market has not seen in two years. Our priority is to conserve our cash, minimize our expenses, and endure this market downturn.”
Canaan has been developing new mining solutions this year in addition to scaling internationally. Canaan officially launched the AvalonMade 13 mining device series in October. The new series is built on cutting-edge application-specific integrated circuit technology and includes two models with hash rates of 110 and 130 TH/s.
“The launch of the new generation product reaffirms our confidence in the fundamental value of the Bitcoin ecosystem and reflects our constant efforts in the research and development of supercomputing technology,” Zhang stated.
As previously reported, Canaan posted a 117% increase in gross profit in Q2 2022 over the same period in 2021. The company still expected a deterioration in financials due to the ongoing bear market.
