var TRINITY_TTS_WP_CONFIG={“cleanText”:”BTC miner Canaan posts $110M net loss in Q2 despite improved revenues.u23f8Block reward miner Canaan Inc. (NASDAQ: CAN) recorded a 31% spike in losses in the second quarter despite increased revenue, the company revealed in its latest earnings report.u23f8Canaanu00a0reportedu00a0$73.9 million in Q2 revenues, up 33% from Q1u2019s $55.2 million. However, it was significantly lower than the $246 million it registered in the same period last year.u23f8The Beijing-based company made the bulk of its revenue from product sales, which hit $58 million. It recorded an uptick in total computing power sold despite lower prices as demand soured.u23f8The company also brought in $0.1 million from artificial intelligence (AI) products, a small proportion of its overall revenue at a time when AIu00a0is all the rageu00a0with technology companies. Canaan launched its first AI chip five years ago but has yet to gain traction in the sector.u23f8Revenue from the firmu2019su00a0miningu00a0business increased to $16 million, a 105% spike from the same period last year on the back of BTC price recovery.u23f8However, despite the increased revenue, the company recorded a net loss of $110 million, down from a net income of $90 million in Q2 last year.u23f8According to CFO James Jin Cheng, the net loss was mainly attributable to u201cinventory write-down, provision for commitment reserve and impairment of property and equipment.u201du23f8The company still believes in the marketu2019s potential and will continue to invest in its technology and products to secure a larger market share, Cheng added.u23f8In his comments, CEO and founder Nangeng Zhang echoed the companyu2019s commitment to BTC mining while acknowledging the mounting challenges. They include a market downturn that has led to lower ASIC rig demand and the collapse of key partners, leading to contract breaches and defaults. On the latter, the company is involved in a dispute with a partner who failed to install 13,000 BTC mining machines and ceased the operation of another 13,000 installed machines.u23f8Shifting regulations have also dealt a blow to the company. In Kazakhstan, the company had to temporarily shut down its mining rigs after a new law came into effect, requiring all miners to first obtain a specialized license. It says itu2019s working with a local partner to obtain the license and hopes to be back in business soon.u23f8A chilly winter for BTC minersu23f8Canaan joins many other miners who have reported losses this year. Canadau2019s Hut 8u00a0reportedu00a0a $12.3 million loss in Q2, blaming a rise in BTC network difficulty and the suspension of some of its mining facilities.u23f8Marathon Digital (NASDAQ: MARA), the worldu2019s largest BTC miner, reported a $21.3 million loss in the second quarter. The company, which is beingu00a0pursuedu00a0by the Securities and Exchange Commission (SEC) for securities violations,u00a0lostu00a0$686 million in 2022.u23f8The block reward mining industry has been under siege for years now. Recently, Laosu00a0cut offu00a0the power supply to miners, and Angolau00a0plansu00a0to ban mining in the country. Other havens like the U.S. and Kazakhstan are also turning against the miners.u23f8The Middle East remains the only region welcoming of miners. Recently, Omanu00a0unveiledu00a0a $350 million mining hub thatu2019s set to host over 2,000 mining rigs. The country intends to raise the number to 15,000 by the end of October.u23f8UAE is alsou00a0investingu00a0heavily in the sector. In May, Abu Dhabiu00a0announcedu00a0the launch of the regionu2019s first large-scale mining facility. A partnership between Abu Dhabiu2019s sovereign wealth fund ADQ and Marathon, the 250MW facility cost over $400 million.u23f8Watch: What if Bitcoin power use can also be used to grow and fuel other parts of the economy?u23f8″,”headlineText”:”BTC miner Canaan posts $110M net loss in Q2 despite improved revenues”,”articleText”:”Block reward miner Canaan Inc. (NASDAQ: CAN) recorded a 31% spike in losses in the second quarter despite increased revenue, the company revealed in its latest earnings report.u23f8Canaanu00a0reportedu00a0$73.9 million in Q2 revenues, up 33% from Q1u2019s $55.2 million. However, it was significantly lower than the $246 million it registered in the same period last year.u23f8The Beijing-based company made the bulk of its revenue from product sales, which hit $58 million. It recorded an uptick in total computing power sold despite lower prices as demand soured.u23f8The company also brought in $0.1 million from artificial intelligence (AI) products, a small proportion of its overall revenue at a time when AIu00a0is all the rageu00a0with technology companies. Canaan launched its first AI chip five years ago but has yet to gain traction in the sector.u23f8Revenue from the firmu2019su00a0miningu00a0business increased to $16 million, a 105% spike from the same period last year on the back of BTC price recovery.u23f8However, despite the increased revenue, the company recorded a net loss of $110 million, down from a net income of $90 million in Q2 last year.u23f8According to CFO James Jin Cheng, the net loss was mainly attributable to u201cinventory write-down, provision for commitment reserve and impairment of property and equipment.u201du23f8The company still believes in the marketu2019s potential and will continue to invest in its technology and products to secure a larger market share, Cheng added.u23f8In his comments, CEO and founder Nangeng Zhang echoed the companyu2019s commitment to BTC mining while acknowledging the mounting challenges. They include a market downturn that has led to lower ASIC rig demand and the collapse of key partners, leading to contract breaches and defaults. On the latter, the company is involved in a dispute with a partner who failed to install 13,000 BTC mining machines and ceased the operation of another 13,000 installed machines.u23f8Shifting regulations have also dealt a blow to the company. In Kazakhstan, the company had to temporarily shut down its mining rigs after a new law came into effect, requiring all miners to first obtain a specialized license. It says itu2019s working with a local partner to obtain the license and hopes to be back in business soon.u23f8A chilly winter for BTC minersu23f8Canaan joins many other miners who have reported losses this year. Canadau2019s Hut 8u00a0reportedu00a0a $12.3 million loss in Q2, blaming a rise in BTC network difficulty and the suspension of some of its mining facilities.u23f8Marathon Digital (NASDAQ: MARA), the worldu2019s largest BTC miner, reported a $21.3 million loss in the second quarter. The company, which is beingu00a0pursuedu00a0by the Securities and Exchange Commission (SEC) for securities violations,u00a0lostu00a0$686 million in 2022.u23f8The block reward mining industry has been under siege for years now. Recently, Laosu00a0cut offu00a0the power supply to miners, and Angolau00a0plansu00a0to ban mining in the country. Other havens like the U.S. and Kazakhstan are also turning against the miners.u23f8The Middle East remains the only region welcoming of miners. Recently, Omanu00a0unveiledu00a0a $350 million mining hub thatu2019s set to host over 2,000 mining rigs. The country intends to raise the number to 15,000 by the end of October.u23f8UAE is alsou00a0investingu00a0heavily in the sector. In May, Abu Dhabiu00a0announcedu00a0the launch of the regionu2019s first large-scale mining facility. A partnership between Abu Dhabiu2019s sovereign wealth fund ADQ and Marathon, the 250MW facility cost over $400 million.u23f8Watch: What if Bitcoin power use can also be used to grow and fuel other parts of the economy?u23f8″,”metadata”:{“author”:”Steve Kaaru”},”pluginVersion”:”5.7.1″}; |
Block reward miner Canaan Inc. (NASDAQ: CAN) recorded a 31% spike in losses in the second quarter despite increased revenue, the company revealed in its latest earnings report.
Canaan reported $73.9 million in Q2 revenues, up 33% from Q1’s $55.2 million. However, it was significantly lower than the $246 million it registered in the same period last year.
The Beijing-based company made the bulk of its revenue from product sales, which hit $58 million. It recorded an uptick in total computing power sold despite lower prices as demand soured.
The company also brought in $0.1 million from artificial intelligence (AI) products, a small proportion of its overall revenue at a time when AI is all the rage with technology companies. Canaan launched its first AI chip five years ago but has yet to gain traction in the sector.
Revenue from the firm’s mining business increased to $16 million, a 105% spike from the same period last year on the back of BTC price recovery.
However, despite the increased revenue, the company recorded a net loss of $110 million, down from a net income of $90 million in Q2 last year.
According to CFO James Jin Cheng, the net loss was mainly attributable to “inventory write-down, provision for commitment reserve and impairment of property and equipment.”
The company still believes in the market’s potential and will continue to invest in its technology and products to secure a larger market share, Cheng added.
In his comments, CEO and founder Nangeng Zhang echoed the company’s commitment to BTC mining while acknowledging the mounting challenges. They include a market downturn that has led to lower ASIC rig demand and the collapse of key partners, leading to contract breaches and defaults. On the latter, the company is involved in a dispute with a partner who failed to install 13,000 BTC mining machines and ceased the operation of another 13,000 installed machines.
Shifting regulations have also dealt a blow to the company. In Kazakhstan, the company had to temporarily shut down its mining rigs after a new law came into effect, requiring all miners to first obtain a specialized license. It says it’s working with a local partner to obtain the license and hopes to be back in business soon.
A chilly winter for BTC miners
Canaan joins many other miners who have reported losses this year. Canada’s Hut 8 reported a $12.3 million loss in Q2, blaming a rise in BTC network difficulty and the suspension of some of its mining facilities.
Marathon Digital (NASDAQ: MARA), the world’s largest BTC miner, reported a $21.3 million loss in the second quarter. The company, which is being pursued by the Securities and Exchange Commission (SEC) for securities violations, lost $686 million in 2022.
The block reward mining industry has been under siege for years now. Recently, Laos cut off the power supply to miners, and Angola plans to ban mining in the country. Other havens like the U.S. and Kazakhstan are also turning against the miners.
The Middle East remains the only region welcoming of miners. Recently, Oman unveiled a $350 million mining hub that’s set to host over 2,000 mining rigs. The country intends to raise the number to 15,000 by the end of October.
UAE is also investing heavily in the sector. In May, Abu Dhabi announced the launch of the region’s first large-scale mining facility. A partnership between Abu Dhabi’s sovereign wealth fund ADQ and Marathon, the 250MW facility cost over $400 million.
Watch: What if Bitcoin power use can also be used to grow and fuel other parts of the economy?
New to blockchain? Check out Thecryptodefi.Com’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.