Crypto Mining Rig Maker Canaan's Q4 Revenue Sunk 82% to $56.8M
The firm reported Q4 net loss per ADS of 38 cents compared to $1 for the same period in 2021.
Crypto mining rig maker Canaan (CAN) reported a year-on-year revenue decrease of 82% to $56.8 million in the fourth quarter of 2022 as it increasingly focuses on self-mining rather than selling machines, according to a Tuesday press release.
Canaan's mining revenue was $10.5 million in the fourth quarter, up 368.2% compared to the same period in 2021. In the same time period, it sold 75.8% less computing power.
Q4 net loss per the company's American depositary shares (ADS) was 38 cents, compared to net earnings of 4 cents in the previous quarter and net earnings of $1 in Q4 2021.
Canaan's mining machines saw low demand in the fourth quarter of 2022, depressed by a slump in the price of bitcoin.
The manufacturer has been increasingly focused on self-mining "to mitigate demand risks during the market downturn," according to CEO and Chairman Nangeng Zhang. Canaan has installed 3.8 EH/s of computing power as of the end of February, he said .
Canaan expects to bring in $65 million in revenue in the first quarter of 2023.
At the time of writing, shares of Canaan were trading flat at $2.51 during pre-market trading.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.