December 9, 2022

Miner manufacturer Canaan cuts profits and expands operations

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Miner manufacturer Canaan cuts profits and expands operations

The net profit of mining equipment manufacturer Canaan has fallen by 90% - despite this, the company will continue to expand and hire new employees.

CEO of a Chinese manufacturerCanaan ASIC miners Nangeng Zhang announced that the company will continue to expand its operations despite the ongoing downturn in the cryptocurrency market. At the same time, net profit for the third quarter of 2022 decreased by 90%, amounting to $8.6 million, which is almost two times less than in the same period last year.

The company's revenue has been falling since the beginning of the year, decliningby 41% in the second quarter. And Canaan's gross profit fell 75% from $130 million. According to the latest financial reports, Canaan sold a total of 3.5 million TH/s of computing power in the third quarter of this year, down 37% from the previous quarter.

Canaan continues to scale itsactivities around the world, including research and development projects, as well as the mining of digital currencies. The company will hire more people to work on projects at its headquarters in Singapore, Zhang said. Moreover, Canaan will expand its mining business in the US:

“We are facing a very difficult period forindustry as the price of bitcoin fell to lows the industry had not seen in nearly two years. Now we are trying to preserve our capital by minimizing costs in order to weather this market downturn.”

In August, Canaan Senior Vice President Edward Lu promised
maintain the company's status as the world's largest manufacturer of mining equipment, despite the decline in the cryptocurrency market.

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