Canaan’s Q2 mining revenue jumps 43% on Q1, but net loss climbs 31%
Bitcoin mining company Canaan announced its unaudited financial results for Q2 2023, showing growth in computing power sold and Bitcoin (BTC) mining revenues, while it tackled a significant net loss of $110 million — up 31% on Q1.
The Nasdaq-listed company outlined a variety of reasons influencing increased revenues and a significant headwind that included an inventory write-down and equipment impairment totaling $54 million.
Canaan recorded $73.9 million in revenue in Q2 2023, up from $55.2 million quarter-on-quarter. This consisted of $57.9 million from products revenue and $15.9 million in Bitcoin mining revenue.
BTC mining revenues reflected 43.3% growth compared to Q1’s $11.1 million, with Canaan’s Q2 2023 more than doubling Q2 2022’s $7.8 million in BTC mining revenues. The company attributed this surge to the recovery in Bitcoin prices and the consequent rise in Bitcoin rewards.
Canaan also reported significant growth in its total computing power sold, reaching 6.1 million terahashes per second, up 45% quarter-on-quarter, with the sector becoming a major driver of revenue for the company.
Canaan also detailed net losses totalling $110.7 million in Q2, which it attributed to non-cash accruals and provisions reflecting changes in selling prices, regulatory shifts and partner agreements.
Related: Bitcoin ASIC manufacturer Canaan saw 82% revenue drop in Q4
Canaan chief financial officer James Jin Cheng added that the losses included inventory write-down, provision for commitment reserve and impairment of property and equipment, which totaled $54.7 million.
As of June 2023, Canaan’s listed cryptocurrency holdings included 1,125 BTC valued at $28.8 million. 747 BTC are owned by Canaan, while 378 BTC are attributed to customer
Read more on cointelegraph.com
