Mining equipment maker Canaan posted a net loss of $84.4 million in the first quarter after losing $91.6 million in the previous period.
Canaan Inc. Reports Unaudited First Quarter 2023 Financial Results
Total Computing Power Sold Rebounded to 4.2 Million Thash/s, up 126.8% QoQ
— Canaan Inc. (@canaanio) May 26, 2023
Miner sales per hash increased to 4.2 million TH/s compared to 1.9 million TH/s in Q4 2022. However, equipment sales revenue decreased from $47.5 million to $44.1 million.
“In the first quarter of 2023, we experienced a further decline in sales revenue due to an industry-wide decline in selling prices and unforeseen delays in payment and shipping as a result of a series of U.S. bank failures,” said Canaan CFO James Jin Chen.
The company’s total revenue, including its mining and AI chip divisions, totaled $55.2 million in three months (up from $56.8 million in the previous quarter).
Of the total, $11.3 million was generated by independent mining of cryptocurrencies, which is 3.3% more than the figure for the previous quarter. The increase came amid the firm’s troubles with deploying additional hardware, Chen said.
“Despite the current difficulties, I am confident that the company is moving in the right direction. We recently received several large contract orders, which allowed us to increase cash flows through customer advances,” he said.
In May, the company entered into an agreement with Cipher Mining to supply 11,000 A1346 bitcoin miners in the third quarter.
Canaan’s chief financial officer emphasized that the current figures for the second quarter show a positive trend. He assessed the company’s financial position as stable.
As of March 31, the firm had $72 million in cash and cash equivalents, with total liabilities of $83 million.
Canaan’s share price in premarket trading fell 6.2% to $2.42 at time of writing from a closing price of $2.58.
Canaan was the first mining equipment manufacturer to go public in November 2019. During the IPO on Nasdaq, the company raised $90 million by placing 10 million depositary receipts at a price of $9.
Recall that in May, Canaan introduced the Avalon Made A1366I ASIC miner model with immersion cooling.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!