Canaan posts 327% jump in quarterly profit in Q1 2022

For the first quarter of 2022, the Chinese manufacturer of mining equipment Canaan posted gross profit of $130.9 million. Compared with the same period last year, the figure rose by 327.2%.

Canaan Inc. Reports Unaudited First Quarter 2022 Financial Results #Mining #Bitcoinhttps://t.co/pss9YPfdzk

— Canaan Inc. (@canaanio) May 19, 2022

The quarter’s revenue totalled $213.9 million — up 236.7% year over year. Canaan sold miners with a combined hash rate of 4.3 EH/s versus 2.0 EH/s in January–March 2021.

The CEO of the company, Nangeng Zhao, noted the contribution to strengthening financial results from increasing sales outside China, the development of an overseas service network and the mining business. As of March 31, the company held 166.96 BTC mined in-house.

“We expected weaker results for the quarter, given the sudden logistics disruption in the second half of March due to anti-COVID measures in the city where our factory and warehouses are located. We are gradually resuming production and deliveries, following local authorities’ guidance,” said Chief Financial Officer James Jin Chen.

According to him, the company had already managed to ship a large portion of overdue orders.

Following the earnings release, Canaan’s shares in premarket trading rose to $3.46 — up almost 10% (as of writing). In November 2019, during its Nasdaq IPO, the company raised $90 million by listing 10 million American depository receipts at $9 apiece.

In May, the U.S. Securities and Exchange Commission placed Canaan on a preliminary list of Chinese companies subject to delisting from U.S. exchanges.

Earlier in April, Canaan introduced a new Bitcoin miner, which in energy efficiency comes close to the benchmarks of flagships from Bitmain and MicroBT.