Bitcoin Mining Rig Maker Canaan Surges After Strong Results and Guidance
The combination of an expanding customer base and higher average selling price drove the better-than-expected fourth quarter.
Hangzhou, China-based Canaan (CAN), one of the industry's largest manufacturers of crypto mining machines, saw its stock jump 16% in premarket action after reporting revenue of $342.8 million in the fourth quarter of 2021, an increase of more than 60% compared to the previous quarter.
- The company previously provided guidance estimating sequential revenue to rise in the 35%-50% range in the fourth quarter.
- “The higher-than-expected top-line result was powered by our business development efforts, which drove the growth of our customer base, enabling us to achieve a larger proportion of spot sales with a higher averaging selling price,” said Chief Financial Officer James Jin Cheng.
- The company’s total computing power sold was 7.7 million terahashes per second (TH/s) in the fourth quarter, up about 15% from 6.7 million TH/s in the previous quarter.
- Canaan expects its total net revenues for the first quarter of 2022 to be higher by 275%-300% year-over-year in the range of RMB 1.5 billion to RMB 1.6 billion.
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