Bitcoin Mining Hardware Firm Canaan Reports Unaudited 22Q2 Financial Results, CAN Shares Up 2% Today
- Canaan said its revenue for the second quarter of this year represented an increase of 52.8 percent from RMB1,081.8 million in the same period of 2021.
- The company reported that the total computing power sold was 5.5 million Thash/s, representing an increase of 27.5 percent from 4.3 million Thash/s in the first quarter of 2022.
- CAN shares are trading around $3.99, up 2.05 percent from the day’s opening price.
Canaan Inc. (NASDAQ: CAN), a leading high-performance computing solutions provider, today announced its unaudited financial results for the three months ending on June 30, 2022. According to the company’s second-quarter earnings report, revenues came in at $246.7 million or RMB1,652.7 million, representing an increase of 21.9 percent from RMB1,356.1 million in the first quarter of 2022.
Canaan said its revenue for the second quarter of this year represented an increase of 52.8 percent from RMB1,081.8 million in the same period of 2021.
Additionally, the company reported that the total computing power sold was 5.5 million Thash/s, representing an increase of 27.5 percent from 4.3 million Thash/s in the first quarter of 2022.
Following a profitable second quarter, CAN shares have recorded a slight bump during today’s premarket. According to market data provided by MarketWatch, CAN shares are up approximately 2.05 percent to trade around $3.99 at publication time.
Canaan 22Q2 Results and the Market Outlook
In a note to investors, Mr. Nangeng Zhang, Chairman and Chief Executive Officer of Canaan, said that the company struggled with the falling cryptocurrency prices in the second quarter of 2022. Additionally, Zhang noted that the COVID-19 containment lockdown in key cities in China also brought severe disruptions to its operations during the just reported quarter.
“During the second quarter, we continued to collaborate with mining farm partners to ramp up our mining business and generated an increasing number of Bitcoins with an improved power supply. As of June 30, 2022, we held a total of 346.84 Bitcoins,” Zhang noted.
On the other hand, Mr. James Jin Cheng, Chief Financial Officer of Canaan, stated that the company projects a tougher market environment from the lower Bitcoin price level. According to him, the overall increased energy price, various pandemics, and geopolitical uncertainties globally may all jeopardize the demand and price for its products.
“Being prepared for this difficult time, we endeavor to maintain healthy cash flows and strengthen our supply chain for smooth delivery. In addition to our diligent business operations, we continued to execute our share repurchase program to drive value for our shareholders,” Cheng noted.
Reportedly, the company had cash equivalents of RMB2,640.7 million or around $394.2 million as of June 30, 2022, compared to RMB2,684.3 million as of December 31, 2021.
Worth noting, that Canaan reported a gross profit of RMB929.7 million approximately $138.8 million during the second quarter, hereby representing an increase of 12 percent from RMB829.8 million reported in the first quarter of 2022.
Reportedly, the company’s crypto mining revenue for the second quarter of 2022 came in at RMB52.1 million or approximately $7.8 million, thereby representing an increase of 60.9 percent from RMB32.4 million recorded during the first quarter of 2022.