Historic Bitcoin mining income fails to offset Canaan Q2 monetary loss

Bitcoin (BTC) miner Canaan‘s second-quarter monetary report confirmed that the agency operated at a loss through the reporting interval regardless of its growing mining income and computing energy.

Per the unaudited monetary report, the miner generated a complete income of $73.9 million, whereas its “value of revenues” have been $143.9 million, leading to a gross lack of $70.1 million. The agency had recorded a gross lack of $47.5 million through the first quarter.

James Jin Cheng, the chief monetary officer of Canaan, added that the agency recorded a web lack of $110.7 million, together with stock write-down, provision for dedication reserve, and impairment of property and gear, totaling $54.7 million.

BTC mining income and computing energy climbs

Canaan revealed that its mining income for the second quarter grew to a historic excessive of $15.9 million, representing a 43.3% enhance from what it generated through the first quarter of the yr.

Per the assertion, the mining income achievement is noteworthy, contemplating the persistent rise in mining problem and hash charges and the regulatory challenges a few of its mining amenities encountered.

CEO Nangeng Zhang said that the agency surpassed its topline steerage regardless of the comparatively stagnant value of the flagship digital asset.

Apart from that, the miner revealed that the full computing energy it bought through the quarter jumped by greater than 44% to six.1 million Thash/s.

Zhang mentioned the agency’s endeavor to drive gross sales throughout numerous fronts, together with main purchasers, channels, and retail, yielded encouraging outcomes. He additional highlighted how the corporate’s partnerships with channel purchasers proved fruitful whereas its on-line retail retailer continued to seize new clientele from various geographical areas.

In the meantime, CFO Cheng attributed the “better-than-expected” income performances to enhancements in its gross sales and mining actions.

Regulatory challenges

The miner, nonetheless, conceded that the regulatory atmosphere and the unpredictability of the crypto market might pose challenges for its continued success.

Cheng mentioned:

“The extreme rising challenges that will impede our enterprise operations. These challenges embody regulatory shifts throughout international locations, counterparty dangers inside this evolving market, and the broader financial panorama’s unpredictability in addition to unexpected occasions that will strain the bitcoin value.”

The CEO additionally shared comparable sentiments, significantly noting that the agency encountered hostile impacts from regional regulatory adjustments and the way an unnamed associate breached an settlement regarding its mining operations.

Canaan suspended round 2.0 Exahash/s of its mining computing capability after encountering regulatory points in Kazakhstan. The agency can be concerned in a authorized tussle in the USA over a breached “Joint Mining Settlement.”