Bitcoin ASIC manufacturer Canaan saw 82% revenue drop in Q4

According to a caller filing with the U.S. Securities and Exchange Commission connected Mar. 7, Canaan, a Chinese Bitcoin (BTC) miner and shaper of application-specific integrated circuit (ASIC) mining machines, reported that its gross decreased by 82.1% Y/Y to $56.8 cardinal successful Q4 2022. During the quarter, Canaan sold 1.9 cardinal terahash per 2nd worthy of computing powerfulness for Bitcoin mining, not accounting for little ASIC prices, representing a 75.8% diminution from Q4 2021. 

At the aforesaid time, Canaan's mining gross improved 368.2% twelvemonth implicit twelvemonth to $10.46 million. As told by Nangeng Zhang, president and CEO of Canaan:

"To mitigate request risks during the marketplace downturn, we person been diligently improving and processing our mining business. Our efforts yielded much advancement successful aboriginal 2023 with 3.8 EH/s hash complaint installed for mining arsenic of the extremity of February. Accordingly, we person made decisive investments successful bolstering our accumulation capableness and expanding our mining operations to much varied geographic regions that connection advantageous conditions."

Despite the segment's success, however, Canaan's nett income swung to a $63.6 cardinal nonaccomplishment successful Q4 2022 compared to a nett of $182.0 cardinal successful Q4 2021. As told by Jin Cheng, Chief fiscal serviceman of Canaan, the nonaccomplishment was owed to inventory write-downs and probe expenses related to its caller fleet of ASICs.

"Considering precise brushed marketplace request and debased selling price, we incurred an further inventory write-down of RMB205.3 million, which besides dampened our gross margin. In conjunction with one-time higher probe and improvement expenses relating to the tape-out for our A13 series, our bottommost enactment suffered losses during the quarter."

For the afloat year, the firm's gross decreased by 13.8% to $634.9 million, chiefly owed to amended manufacture conditions successful Q1 and Q2 2022. The steadfast presently has $706 cardinal successful full assets compared to $67 cardinal successful full liabilities.