In the second quarter of 2021, Canaan’s revenue from its mining equipment manufacturing stood at $167.5 million. This marked the highest quarterly sales volume in the company’s history.
Canaan Inc. Reports Unaudited Second Quarter 2021 Financial Results and Announces Change of Board Composition.
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— Canaan (@canaanio) September 15, 2021
According to the earnings report, total cumulative hashrate sold during the period reached 5.9 million TH/s, up 200% from the first quarter. Year over year, sales by power rose 126.9% compared with 2020.
“Sustainable year-over-year and period-over-period growth is largely driven by the increase in the number of Bitcoin mining devices shipped, supported by strong market demand,” according to the press release.
The company reported net income of $37.9 million, the best result since Canaan’s IPO in November 2019.
In the first quarter, the firm’s profit amounted to about $186,500.
CEO Nangeng Zhang said the solid results have secured “significant pre-orders” for equipment. Largely due to upfront payments, cash and cash equivalents on hand as of June 30 reached $189 million, he added.
In April, Canaan agreed to supply miners for a value of $93.63 million to Genesis Digital Assets, with which it has formed a strategic partnership. In the same month, Mawson Infrastructure Group placed an order for 11,760 devices for Bitcoin mining.
In June, Canaan announced an expansion of its cooperation with Genesis Digital, under which it will supply another 10,000 ASIC miners.
Commenting on the quarter’s results, Canaan’s CEO said the company will continue to develop its own mining business. He also noted demand from a number of clients for the company’s Kendryte K510 edge AI chip for edge computing.
Shares rose nearly 5% in premarket trading versus the closing price.
As noted, after Canaan’s IPO, Iterative Capital Management’s Leo Zhang predicted the company would exit mining to focus on AI.