Canaan Down 1.82% as Bitcoin Miner’s Q3 Earnings Raise Concerns

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China’s shares fell about 2% on Monday after the Chinese Bitcoin mining gear maker reported an 88% drop in revenue in Q3 2022 year-over-year. Canaan said the huge gains come amid a slump in the broader crypto market, with Bitcoin down 65% year-to-date.

Canada’s revenue in Q3 2022 falls 88%

The Canadian Bitcoin maker reported Q3 financial results on Monday, saying its revenue in the quarter fell 88% to 61.1 million yuan ($8.6 million). at the same time last year. The report sent Canadian shares down 1.82% on the Nasdaq stock market.

Canaan said the amount of computing power sold was 3.5 million Thash/s, down 37.1% from the first quarter. Every year, the amount of computing power sold has declined by 48.5%, reported by the Chinese company.

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Revenue was RMB978.2 million (US$137.5 million), down 40.8% from Q2 2022. Compared to the same quarter last year, China’s revenue fell 25.8%. Revenue was RMB234.2 million (US$32.9 million) in the last quarter, down 74.8% on the basis and 68.4% from Q3 2021.

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Canada’s CEO Blames Crypto Market Slump on Weak Quarterly Report

Canaan said that the weak results of the Q3 came about due to the reduction of the crypto market as inflation and high interest rates continue to affect the risk assets. Bitcoin is currently trading at $16,720, down 65% year to date.

“The bitcoin mining market has decreased in the third quarter, while the bitcoin price has changed and increased to about sixteen thousand dollars at this time. The negative market dynamics greatly restricted the income and flows bitcoin miners’ money. As miners are forced to cut their demand for computing power, we need to adjust our pricing in response.”

– Kanaana Inc. reports. The three financial results of the year 2022 are not recorded

The crypto market reacted last week amid the chaos surrounding the crypto exchange FTX, which finally filed for bankruptcy. The uncertainty pushed the world’s largest cryptocurrency below the $16,000 mark last Friday.

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It’s not surprising that Canaan’s annual report shows that some mining companies have struggled in recent months. Argo Blockchain reported a 54% drop in revenue in August, however, mining margins increased by 7% in October, according to its latest update.

Do you think crypto can crash in 2023? Tell us in the comments below.

For the author

Tim Fries is the founder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate in the investment team at RW Baird’s US Private Equity division, and is also the founder of Protective Technologies Capital, an investment firm specializing in detection, protection and remediation. .

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