Bitcoin miner Canaan is scaling operations despite low earnings, CEO says

Chinese cryptocurrency mining company Canaan will continue to expand operations despite the ongoing bear market and an associated drop in earnings, according to the company’s CEO.

Canaan had a 90% decline during the quarter in Q3 2022, the firm officially announced on November 14. The firm’s net income in the 3rd quarter was 61.1 million renminbi (RMB), or 8.6 million dollars, which is 88%. decline from the same period in 2021, Kanaan noted.

The company’s revenue fell around 41% from RMB 1.7 million (US$230,000) in Q2 2022, while gross profit fell 75% from RMB 940 million (US$130 million) in the previous quarter.

While Bitcoin (BTC) mining is becoming less profitable due to the crypto winter, Canaan’s mining units have also experienced a significant drop in demand. According to the latest financials, Canaan sold a total of 3.5 million Terahashes per second (Th/s) of computing power in Q3, or 37% less than the previous quarter.

Despite a downward trend in its latest financial report, Canaan does not plan to slow down the company’s growth. On the contrary, Canaan continues to scale its operations worldwide, including research and development projects as well as mining operations, CEO Nangeng Zhang said.

“As part of our ongoing efforts to strengthen our research and development capabilities, we are expanding our headquarters in Singapore with promising local research and development talent to help support our business on a global scale,” Zhang noted.

He also mentioned that Canaan has expanded its US mining operations this year, adding:

“We are facing a very tough industry period as the Bitcoin price is falling to the lowest levels the market has not seen in two years. Our priority is to save money, minimize our expenses and weather this market downturn.”

Apart from scaling worldwide, Canaan has been working on new mining solutions this year. In October, Canaan officially launched its new mining device series, AvalonMade 13. The new series is based on the advanced application-specific integrated circuit technology, including two models with 110 Thash/s and 130 Thash/s hash rates.

Canaan did not immediately respond to Cointelegraph’s request for comment.

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“The launch of the new generation product confirms our confidence in the fundamental value of the Bitcoin ecosystem and reflects our constant efforts in the research and development of supercomputer technology,” said Zhang.

As previously reported by Cointelegraph, Canaan had a 117% increase in gross profit in Q2 2022 compared to the same period in 2021. The company still expected a deterioration in the economy due to the ongoing bear market.