Canaan’s quarterly loss narrows to $84.4 million

Following the first quarter, mining equipment maker Canaan reported a net loss of $84.4 million, after a loss of $91.6 million in the previous period.

Canaan Inc. Reports Unaudited First Quarter 2023 Financial Results

Total Computing Power Sold Rebounded to 4.2 Million Thash/s, up 126.8% QoQ

Learn more: https://t.co/Z7Yn0Ni2lE pic.twitter.com/xF5GEvGjoO

— Canaan Inc. (@canaanio) May 26, 2023

Miner sales, measured in hash rate, rose to 4.2 million TH/s from 1.9 million TH/s in Q4 2022. However revenue from equipment sales declined from $47.5 million to $44.1 million.

“In the first quarter of 2023 we faced further declines in sales revenue due to a sector-wide fall in selling prices and unforeseen delays in payments and shipments as a result of a string of U.S. bank bankruptcies,” commented Canaan’s chief financial officer James Jin Chen.

Total revenue for the company, including mining and AI chips, for the quarter stood at $55.2 million (in the prior quarter — $56,8 млн).

Of the total, standalone cryptocurrency mining accounted for $11.3 million, up 3.3% from the previous quarter. The rise came as the firm faced issues deploying additional equipment, Chen noted.

“Despite the current difficulties, I am confident the company is moving in the right direction. Recently we secured several large contract orders, which allowed us to increase cash flow from customer advances,” he said.

In May, the company entered into an agreement with Cipher Mining to supply 11,000 Bitcoin miners A1346 in Q3.

The CFO stressed that the current second-quarter figures show positive momentum. He described the company’s financial position as stable.

As of March 31, the company had cash and cash equivalents of $72 million, with total liabilities of $83 million.

Canaan’s stock in premarket trading fell 6.2% to $2.42 at the time of writing, from a close of $2.58.

Canaan was the first mining equipment maker to go public on the Nasdaq in November 2019. In its IPO on Nasdaq, the company raised $90 million by issuing 10 million American depositary receipts at $9 each.

In May, Canaan unveiled the Avalon Made A1366I ASIC miner with immersion cooling.