Overseas customers accounted for 78% of Canaan’s revenue

During January–March 2021, the revenue of the Chinese mining equipment maker Canaan Creative rose 5.9x year-over-year to 402.8 million yuan ($61.5 million). The share of overseas device sales rose from 4.9% to 78.4%, according to the financial report.

On June 1st, Chinese mining machine manufacturer Canaan disclosed its first-quarter financial report, with revenue of 402.8 million yuan, 78.4% of overseas revenue, and gross profit of 194.2 million yuan, a 21x increase in gross profit from the previous quarter. pic.twitter.com/iu9KVZ4TMm

— Wu Blockchain (@WuBlockchain) June 1, 2021

Gross profit amounted to 194.2 million yuan ($29.6 million), compared with 2.4 million yuan a year earlier and 9.1 million yuan in Q4 2020.

“We have achieved significant progress in expanding the global customer base”, said Canaan’s Chief Financial Officer Tong He.

Previously, the majority of the company’s revenue, as well as that of its rivals Bitmain and MicroBT, was generated by customers in China.

CEO Nangeng Zhang named among the growth drivers the high price of Bitcoin, rising demand for equipment to mine it, and the company’s ability to scale production and shipments of miners.

As of March 31, the value of contracted but unfulfilled orders stood at 1.21 billion yuan ($184.8 million).

The total hash rate of the equipment sold by the company in Q1 reached 2 million TH/s, up 122% year-over-year.

Earlier in May, Chinese authorities announced plans to establish strict oversight of cryptocurrency mining.

In the same month, the Xinhua News Agency published a piece criticizing Bitcoin and mining.

As a result, Chinese ASIC manufacturers increased exports abroad, including to Kazakhstan and Canada. BIT Mining Limited announced the construction of a mining center in the United States.

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