Chinese language cryptocurrency mining company Canaan will proceed to enlarge operations in spite of the continued undergo marketplace and an related drop in income, in keeping with the corporate’s CEO.
Canaan posted a 90% over-the-quarter lower in internet source of revenue in Q3 2022, the company formally introduced on Nov. 14. The company’s Q3 internet source of revenue amounted to 61.1 million renminbi (RMB), or $8.6 million, which is a 88% lower from the similar duration in 2021, Canaan famous.
The corporate’s revenues dropped about 41% from 1.7 million RMB ($230,000) in Q2 2022, whilst gross benefit plummeted 75% from 940 million RMB ($130 million) posted within the earlier quarter.
Amid Bitcoin (BTC) mining changing into much less winning because of the crypto iciness, Canaan’s mining gadgets have additionally skilled an important decline in call for. In line with the newest financials, Canaan offered a complete 3.5 million terahashes consistent with 2nd (Th/s) of computing energy in Q3, or 37% not up to within the earlier quarter.
In spite of a downward development in its newest monetary file, Canaan does no longer plan to decelerate the corporate’s expansion. To the contrary, Canaan continues to scale its operations the world over, together with analysis and building initiatives in addition to mining operations, CEO Nangeng Zhang mentioned.
“As a part of our ongoing effort to give a boost to our analysis and building functions, we’re increasing our Singapore headquarters with promising native analysis and building skills to lend a hand give a boost to our trade on an international scale,” Zhang famous.
He additionally discussed that Canaan has been increasing its mining trade in the USA this 12 months, including:
“We are facing an overly tricky business duration because the Bitcoin value is sinking to lows the marketplace has no longer noticed in two years. Our precedence is to preserve our money, reduce our bills, and bear this marketplace downturn.”
Aside from scaling international, Canaan has been running on new mining answers this 12 months. In October, Canaan formally launched its new mining software sequence, AvalonMade 13. The brand new sequence is in line with the complicated application-specific built-in circuit generation, together with two fashions that includes 110 Thash/s and 130 Thash/s hash charges.
Canaan didn’t straight away reply to Cointelegraph’s request for remark.
“The release of the brand new era product reaffirms our self assurance within the basic price of the Bitcoin ecosystem and displays our consistent efforts within the analysis and building of supercomputing generation,” Zhang mentioned.
As in the past reported by way of Cointelegraph, Canaan posted a 117% building up in gross benefit in Q2 2022 over the similar duration in 2021. The corporate nonetheless anticipated a deterioration in financials because of the continued undergo marketplace.