Canaan, an excavator manufacturer cryptocurrency China’s big There appears to be no problem with crypto bans in the country as the company’s overall performance continues to grow in 2022.
Canaan announceOfficial financial results for the second quarter of 2022 on Thursday. It reported a 117% increase in gross profit from the same period in 2021, according to the company’s data. Profit in the second quarter was 930 million yuan (RMB), or nearly $139 million.
The company’s second-quarter net income was 608 million yuan, or $91 million, an increase of 149% from 425 million yuan in the same period last year.
Despite the huge gains, Canaan found the second quarter to be a challenging time as Bitcoin (BTC) plummeted below $20,000 in June, said company CEO Nangeng Zhang.
“The COVID-19 quarantine lockdowns in key Chinese cities have also caused severe disruption to our daily operations and our demand for AI chips,” he said.
Zhang said Canaan has expanded its operations around the world. especially the establishment of an international headquarters in Singapore. The company is also working to expand its mining business and mine more BTC with an improved power supply. As of the end of June, Canaan held a total of 346.84 BTC, or $8.1 million.
“We are aware of the downward pressure from the Bitcoin price since Q4 last year and expect it to be a protracted obstacle to our performance in the coming quarters. However, we believe in the unique value of Bitcoin. and long-term opportunities.”
Canaan’s chief financial officer, James Jin Cheng, echoed the CEO’s remarks, saying that the company expects the market environment to tighten due to lower Bitcoin price levels and rising energy prices. including the pandemic and various political uncertainties.
“While Bitcoin price dropped further in the second quarter, We have reduced product prices for spot sales. to support the pressure on our customers [… ] And we expect gross margins to drop considerably in the second half of this year.”
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