Cryptocurrency mining big Canaan continues to generate vital revenues from crypto operations regardless of the continuing crypto mining disaster.
Canaan’s whole income for the primary 9 months of 2022 was roughly 4 billion Chinese language yuan (RMB), or about $573 million, a spokesperson for Canaan informed Cointelegraph. Because the agency expects to generate one other 310 million RMB ($46 million) in This fall, the whole annual revenues is predicted to quantity to 4.3 billion RMB ($619 million).
The quantity is down round 14% from Canaan’s RMB-denominated income of 4.9 billion RMB final 12 months. In USD, the whole revenues have been down about 21% from $783 million in 2021.
Canaan’s 2022 annual revenues would nonetheless be considerably greater than in earlier years, surging almost 90% from 448 million RMB ($64 million) in 2020. In 2019, Canaan’s annual income amounted to 1.4 billion RMB ($201 million).
Canaan’s breakdown of income by providers. Supply: SEC report
Canaan’s monetary success over the previous few years comes after the corporate launched its personal mining operations, increasing providers past manufacturing crypto mining gadgets.
“We began our mining operations in mid-2021. One in every of our concerns is that when there’s a scarcity of mining machine demand, we will deploy a few of our stock into our mining operations to earn additional revenue,” Canaan stated. Underneath sure circumstances, Canaan is ready to resell their mining gear, the agency’s consultant acknowledged:
“We stability our machine utilization by way of mining, and our mining operation serves as a strong help and complement to mining machine gross sales.”
The spokesperson declined to reveal extra particulars in regards to the utilization and reselling of used mining gear.
Associated: Bitcoin ASIC miner costs hovering at lows not seen in years
The information comes amid the crypto mining business struggling a significant disaster, with 100% of public mining firms having to promote nearly all crypto they mined in 2022.
On Dec. 28, crypto mining agency Argo Blockchain bought flagship mining facility Helios to Galaxy Digital as a way to cut back its debt and enhance liquidity. Beforehand, crypto mining agency Core Scientific additionally filed for Chapter 11 chapter on Dec. 21 because of rising vitality prices.
