Main Chinese language cryptocurrency miner producer Canaan seems to don’t have any points with the native ban on crypto, as the corporate’s total efficiency has continued to develop in 2022.
Canaan formally announced monetary outcomes for the second quarter of 2022 on Thursday, reporting a 117% enhance in gross revenue from the identical interval of 2021. In accordance with the agency, the Q2 income amounted to 930 million renminbi (RMB), or practically $139 million.
The corporate’s Q2 web earnings was 608 million RMB, or $91 million, or a 149% enhance from 425 million RMB in the identical interval final yr. Canaan famous that overseas foreign money translation adjustment in Q2 was an earnings in comparison with earlier losses as a result of U.S. greenback appreciation towards RMB throughout Q2.
Regardless of posting important income, Canaan has discovered the second quarter a difficult interval attributable to Bitcoin (BTC) plummeting under $20,000 in June, the corporate’s CEO Nangeng Zhang mentioned.
“The COVID-19 containment lockdown in key cities in China additionally introduced extreme disruptions to our day by day operations and demand for our AI chips,” he famous.
Zhang talked about that Canaan has been increasing its international presence, significantly establishing worldwide headquarters in Singapore. The agency has additionally been working to scale its mining enterprise, producing extra BTC with an improved energy provide. As of late June, Canaan held a complete of 346.84 BTC, or $8.1 million, the CEO mentioned, including:
“We’re absolutely conscious of the downward strain from the Bitcoin worth because the final fourth quarter and anticipate it to convey extended headwinds to our efficiency within the coming quarters. Nonetheless, we consider within the distinctive worth of Bitcoin and its long-term prospects.”
Canaan’s chief monetary officer James Jin Cheng echoed the CEO’s remarks, stating that the corporate expects a more durable market atmosphere from the decrease Bitcoin worth stage in addition to elevated vitality worth and numerous pandemic and geopolitical uncertainties. He said:
“Because the Bitcoin worth additional decreased within the second quarter, we responsively lowered our product worth for spot gross sales to shoulder the strain with our purchasers. […] We anticipate the gross margin to lower dramatically within the second half of this yr.”
The continuing cryptocurrency winter shouldn’t be the one concern of crypto mining corporations in China although. As beforehand reported, China introduced a blanket ban on all crypto operations — together with mining and buying and selling — in September 2021, pushing many companies to pressure international enlargement and escape to different international locations. Previous to the ban, China was taking down a number of crypto mining farms in a transfer to avoid wasting vitality and curb crypto operations within the nation.
Associated: Bitcoin mining income jumps 68.6% from the lowest-earning day of 2022
Apparently, the “nice Chinese language crypto ban” has not affected native crypto fanatics and companies an excessive amount of as far as China reemerged because the second-largest Bitcoin mining nation by January 2022. In accordance with knowledge from the Cambridge Bitcoin Electrical energy Consumption Index, China nonetheless hosts 21% of the full international Bitcoin hash fee, following solely the US, which produces 38%.