According to a new presentation With the US Securities and Exchange Commission on March 7, Canaan, a Chinese Bitcoin (BTC) miner and manufacturer of application-specific integrated circuit (ASIC) mining machines, reported that its revenue decreased by a 82.1% YoY to $56.8 million in Q4 2022. During the quarter, Canaan sold 1.9 million terahash per second of computing power for Bitcoin mining, not accounting for lower ASIC prices , which represents a decrease of 75.8% compared to the fourth quarter of 2021.
At the same time, Canaan’s mining revenues improved 368.2% year-over-year to $10.46 million. As told by Nangeng Zhang, President and CEO of Canaan:
“To mitigate demand risks during the market downturn, we have been diligently improving and developing our mining business. Our efforts produced further progress in early 2023 with a hash rate of 3.8 EH/s installed for mining at end of February. Consequently, we have made decisive investments to strengthen our production capacity and expand our mining operations to more varied geographic regions that offer advantageous conditions.”
However, despite the success of the segment, Canaan’s net income posted a loss of $63.6 million in the fourth quarter of 2022 compared to a gain of $182.0 million in the fourth quarter of 2021. As reported by Jin Cheng, CFO of Canaan, the loss was due to inventory deed. deregistration and research expenses related to its new fleet of ASICs.
“Considering the very weak market demand and low sales price, we incurred an additional inventory write-down of RMB 205.3 million, which also reduced our gross margin. our A13 series, our bottom line suffered losses during the trimester”.
For the full year, the company’s revenues decreased 13.8% to $634.9 million, primarily due to better industry conditions in the first and second quarters of 2022. The company currently has $706 million in total assets in compared to $67 million in total liabilities.
