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Canaan’s Q2 mining income jumps 43% on Q1, however internet loss climbs 31%


Bitcoin mining agency Canaan posts second quarter financials, with BTC mining income up 43% from Q1 2023, although internet losses additionally rose 31% to $110 million.

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Canaan’s Q2 mining revenue jumps 43% on Q1, but net loss climbs 31%

Bitcoin mining firm Canaan introduced its unaudited monetary outcomes for Q2 2023, displaying development in computing energy offered and Bitcoin (BTC) mining revenues, whereas it tackled a big internet lack of $110 million — up 31% on Q1.

The Nasdaq-listed firm outlined a wide range of causes influencing elevated revenues and a big headwind that included a listing write-down and tools impairment totaling $54 million.

Canaan recorded $73.9 million in income in Q2 2023, up from $55.2 million quarter-on-quarter. This consisted of $57.9 million from merchandise income and $15.9 million in Bitcoin mining income.

BTC mining revenues mirrored 43.3% development in comparison with Q1’s $11.1 million, with Canaan’s Q2 2023 greater than doubling Q2 2022’s $7.eight million in BTC mining revenues. The corporate attributed this surge to the restoration in Bitcoin costs and the resultant rise in Bitcoin rewards.

“The sequential enhance was primarily pushed by the Bitcoin value restoration and elevated Bitcoin rewards throughout the community in the course of the quarter.”

Canaan additionally reported important development in its whole computing energy offered, reaching 6.1 million terahashes per second, up 45% quarter-on-quarter, with the sector changing into a significant driver of income for the corporate.

Canaan additionally detailed internet losses totalling $110.7 million in Q2, which it attributed to non-cash accruals and provisions reflecting modifications in promoting costs, regulatory shifts and associate agreements.

Associated: Bitcoin ASIC producer Canaan noticed 82% income drop in This fall

Canaan chief monetary officer James Jin Cheng added that the losses included stock write-down, provision for dedication reserve and impairment of property and tools, which totaled $54.7 million.

“These non-cash accruals and provisions replicate our consideration of the newest promoting value change, regulation modifications in Kazakhstan, and the default by the associate at a U.S. venture, which didn’t affect our money movement.”

As of June 2023, Canaan’s listed cryptocurrency holdings included 1,125 BTC valued at $28.eight million. 747 BTC are owned by Canaan, whereas 378 BTC are attributed to buyer deposits.

Canaan additionally reported that it had suspended exahashes per second of its mining computing energy based mostly in Kazakhstan to make sure authorized compliance with the Guidelines for Licensing of Digital Mining Actions coming into impact.

The corporate is within the technique of acquiring a specialised license to proceed its operations and expects a discount in its Q3 BTC era because of the offline {hardware}.

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