1 year ago
Bitcoin (BTC) miner Canaan‘s second-quarter fiscal report showed that the steadfast operated astatine a nonaccomplishment during the reporting play contempt its expanding mining gross and computing power.
Per the unaudited fiscal report, the miner generated a full gross of $73.9 million, portion its “cost of revenues” were $143.9 million, resulting successful a gross nonaccomplishment of $70.1 million. The steadfast had recorded a gross loss of $47.5 cardinal during the first quarter.
James Jin Cheng, the main fiscal serviceman of Canaan, added that the steadfast recorded a nett nonaccomplishment of $110.7 million, including inventory write-down, proviso for committedness reserve, and impairment of spot and equipment, totaling $54.7 million.
BTC mining gross and computing powerfulness climbs
Canaan revealed that its mining gross for the 2nd 4th grew to a historical precocious of $15.9 million, representing a 43.3% summation from what it generated during the archetypal 4th of the year.
Per the statement, the mining gross accomplishment is noteworthy, considering the persistent emergence successful mining trouble and hash rates and the regulatory challenges immoderate of its mining facilities encountered.
CEO Nangeng Zhang stated that the steadfast surpassed its topline guidance contempt the comparatively stagnant terms of the flagship integer asset.
Besides that, the miner revealed that the full computing powerfulness it sold during the 4th jumped by much than 44% to 6.1 cardinal Thash/s.
Zhang said the firm’s endeavor to thrust income crossed assorted fronts, including large clients, channels, and retail, yielded encouraging results. He further highlighted however the company’s partnerships with transmission clients proved fruitful portion its online retail store continued to seizure caller clientele from divers geographical regions.
Meanwhile, CFO Cheng attributed the “better-than-expected” gross performances to improvements successful its income and mining activities.
Regulatory challenges
The miner, however, conceded that the regulatory situation and the unpredictability of the crypto marketplace could airs challenges for its continued success.
Cheng said:
“The terrible emerging challenges that whitethorn impede our concern operations. These challenges encompass regulatory shifts crossed countries, counterparty risks wrong this evolving market, and the broader economical landscape’s unpredictability arsenic good arsenic unforeseen events that whitethorn unit the bitcoin price.”
The CEO besides shared akin sentiments, peculiarly noting that the steadfast encountered adverse impacts from determination regulatory changes and however an unnamed spouse breached an statement relating to its mining operations.
Canaan suspended astir 2.0 Exahash/s of its mining computing capableness aft encountering regulatory issues successful Kazakhstan. The steadfast is besides progressive successful a ineligible tussle successful the United States implicit a breached “Joint Mining Agreement.”
The station Historic Bitcoin mining gross fails to offset Canaan Q2 fiscal loss appeared archetypal connected CryptoSlate.
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