Canaan Inc, the crypto miner and mining rig producer, said the company’s overall revenue in Q3 stood at $33.3 million or some $40 million lower than the Q2 revenue. According to the company’s CEO, stagnant bitcoin prices and rate hikes by the U.S. Federal Reserve were some of the key factors that contributed to the decline in revenues.
Canaan’s Latest Mining Revenue Nearly 80% Lower Than in Q2
In the third quarter (Q3) of 2023, the overall revenue of Canaan Inc, the crypto miner and mining rig producer, stood at $33.3 million or just over $40 million lower than the $73.9 million realized in Q2, the firm’s latest financial results have shown. The firm’s Q3 revenues are also significantly lower than the $145.5 million generated during the same period in 2022.
As shown in the company’s unaudited Q3 financial results, Canaan Inc revenues earned from mining activities were nearly 80% ($3.3 million) lower than Q2 revenues of $15.9 million. Similarly, Canaan’s 2023 Q3 mining revenues are almost 65% lower than the $9.2 million that was generated in Q3 of 2022.
Increased Price Competition
Commenting on the company’s performance in the quarter under review, Nangeng Zhang, the chairman and CEO of Canaan, said:
During the third quarter of 2023, the stagnant bitcoin price and further interest rate hikes by the Federal Reserve presented us with significant challenges. Despite these headwinds, we have stayed committed to our strategic plan. In mid-September, we launched and opened pre-sales for our new A14 product series, featuring computing power of 150Thash/s with superior energy efficiency of 21J/Thash/s.
Zhang also identified increased price competition and “a noticeable softening in purchasing power on the demand front” as factors that contributed to the drop in revenues. As a consequence, Canaan went on to record a loss from operations of $112.8 million. The loss is $6.3 million lower than that realized in Q2 of 2023.
Meanwhile, in its Nov. 28 press release, Canaan revealed it had been granted a “Type II license for mining hardware owners to conduct bitcoin mining in Kazakhstan.” Concerning a dispute with its U.S. mining partner, Canaan said its subsidiary had filed an arbitration demand on October 19, 2023. In addition, the subsidiary had taken “possession of approximately all 26,000 units of mining machines deployed in this project.”
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