Chinese language cryptocurrency mining agency Canaan will proceed to develop operations regardless of the continued bear market and an related drop in earnings, in line with the corporate’s CEO.
Canaan posted a 90% over-the-quarter lower in web earnings in Q3 2022, the agency formally introduced on Nov. 14. The agency’s Q3 web earnings amounted to 61.1 million renminbi (RMB), or $8.6 million, which is a 88% lower from the identical interval in 2021, Canaan famous.
The corporate’s revenues dropped about 41% from 1.7 million RMB ($230,000) in Q2 2022, whereas gross revenue plummeted 75% from 940 million RMB ($130 million) posted within the earlier quarter.
Amid Bitcoin (BTC) mining turning into much less worthwhile because of the crypto winter, Canaan’s mining gadgets have additionally skilled a major decline in demand. In line with the most recent financials, Canaan bought a complete 3.5 million terahashes per second (Th/s) of computing energy in Q3, or 37% lower than within the earlier quarter.
Regardless of a downward development in its newest monetary report, Canaan doesn’t plan to decelerate the corporate’s development. Quite the opposite, Canaan continues to scale its operations the world over, together with analysis and growth tasks in addition to mining operations, CEO Nangeng Zhang stated.
“As a part of our ongoing effort to strengthen our analysis and growth capabilities, we’re increasing our Singapore headquarters with promising native analysis and growth skills to assist help our enterprise on a worldwide scale,” Zhang famous.
He additionally talked about that Canaan has been increasing its mining enterprise in america this yr, including:
“We face a really robust business interval because the Bitcoin value is sinking to lows the market has not seen in two years. Our precedence is to preserve our money, reduce our bills, and endure this market downturn.”
Aside from scaling worldwide, Canaan has been engaged on new mining options this yr. In October, Canaan formally launched its new mining system collection, AvalonMade 13. The brand new collection is predicated on the superior application-specific built-in circuit expertise, together with two fashions that includes 110 Thash/s and 130 Thash/s hash charges.
Canaan didn’t instantly reply to Cointelegraph’s request for remark.
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“The launch of the brand new technology product reaffirms our confidence within the basic worth of the Bitcoin ecosystem and displays our fixed efforts within the analysis and growth of supercomputing expertise,” Zhang said.
As beforehand reported by Cointelegraph, Canaan posted a 117% enhance in gross revenue in Q2 2022 over the identical interval in 2021. The corporate nonetheless anticipated a deterioration in financials because of the ongoing bear market.