Bitcoin mining hardware maker Canaan records highest quarterly profit since 2019 IPO
Although there has been a price decline for Bitcoin in Q2 2021, mining hardware making firm Canaan has registered significant business gains during the period.
Canaan’s unaudited Q2 financial report accessed on Tuesday showed that the firm had recorded over $1 billion Chinese renminbi (roughly $167.5 million) in total net revenue for Q2 2021. This figure marks its highest quarterly sales since 2019.
As per the reports, Canaan Q2 revenue represents an increase of 168 per cent compared to its Q1 financials. When compared to Q2 2020, the figure shows a jump of 507.3 per cent.
According to the documents, total revenue was not the only category that witnessed quarterly improvement. The net profit for this period was $37.9 million, marking the company’s highest net profit in a quarter since its 2019 public offering.
Canaan has recorded a net loss of $33-million in Q1 despite the positive Bitcoin price action that was dominating in the early months of 2021.
It has been noted that mining establishments have helped improve Canaan’s revenue significantly through inventory purchases in Q2. The firm had delivered hardware amounting to a sum of 5.9 million terahashes per second (TH/s) in Q2 2021, which is a 200 per cent increase from its delivery figures from Q1.
In the August of 2020, Genesis Digital Assets had announced the purchase of 20,000 Bitcoin miners from Canaan, with additional plans of buying another 180,000 rigs.
Canaan’s CEO Nangeng Zhang has described the firm’s Q2 performance as “remarkable,” adding that despite a series of Bitcoin price fluctuations and unexpected regulatory policy dynamics, Canaan has managed to achieve “record-high topline results” by delivering “a robust 5.9 million TH/s of computing power to our clients.”
Canaan’s share prices rose while this report was being written. However, the figures are still lagging behind its 2021 high above $36 registered back in mid-March.
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