Home
News
Canaan’s Stock Surging Upwards
Canaan’s stock rose 0.77% in U.S. trading on Thursday after the firm reported that net income increased in the second quarter compared to the same period last year, despite the effects of the Covid-19 lockdowns in China and difficult market circumstances. According to the company’s most recent financial report, which was issued on Thursday, the Beijing-based manufacturer of mining equipment generated 1.65 billion yuan, or 246.7 million USD in sales in the second quarter of this year, increasing 52.8% from the same period last year.
Compared to a net income of 245 million yuan a year earlier, it increased to 608.9 million yuan.
The second quarter of this year saw a 7.7% year-over-year decline in the total computing power sold, to 5.5 million terahashes per second, according to the Nasdaq-listed business, which also noted that it decreased its product pricing for spot sales as the price of Bitcoin declined throughout the quarter.
The Growth Despite Challenges
James Jin Cheng, Chief Financial Officer of Canaan, stated in the earnings report that looking forward to the coming quarters, we see a tougher market environment from the lower Bitcoin price level, overall increased energy price, and various pandemic and geopolitical uncertainties worldwide, which may all jeopardize the demand and price for our products. With Canadian miner Hut 8 and American-based Marathon Digital Holdings both reporting wider losses in the second quarter, bitcoin miners were experiencing difficulties.
Canaan anticipates a 17% to 32% drop in overall net revenues compared to the same period last year for the third quarter. Canaan is still growing in North America despite the challenging market conditions and is developing regional warehouses, logistics, and repair facilities while looking into mining operation opportunities, according to Nangeng Zhang, chairman, and chief executive officer of Canaan, on Thursday during an earnings call.
ALSO READ: Huobi Native Stablecoin Momentarily De-Pegs From Us Dollar Due to Liquidity Issues
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
