Canaan Inc. Releases Unaudited Financial Results for the First Quarter of 2022

Key Takeaways

  • Canaan released its preliminary financial statistics for the three months that ended March 31, 2022. 
  • COVID-19 caused significant logistic and macroeconomic disruptions, which led to an increasingly unstable environment in 2022, Mr. Nangeng Zhang said.
  • Revenues were RMB1,356.1 million, a 236.7 percent increase from RMB402.8 million in the same period in 2021.

Today Canaan released its preliminary financial statistics for the three months that ended March 31, 2022. Revenues were RMB1,356.1 million which is basically a 236.7 percent increase from RMB402.8 million in the same period in 2021.

A year ago, Canaan had sold 2.0 mths of processing power in the same quarter, a 119.1 percent increase. The corporation had 166.96 bitcoins on its balance sheet as of March 31, 2022.

COVID-19 caused significant logistic and macroeconomic disruptions, which led to an increasingly unstable environment in 2022, Mr. Nangeng Zhang said. Mr. Nangeng Zhang is the Chairman and Chief Executive Officer of Canaan,

He added,’’ While facing these obstacles, we remained committed to improving our client partnerships and increasing our global reach. As a result, our processing power sold in the first quarter reached 4.3 million Thash/s, a 119.1 percent increase from 2.0 million Thash/s in the same time in 2021.”

Mr. Nangeng Zhang said that the company has established an international headquarters in Singapore and they also have already gotten recognition and aid from local authorities. ‘’We are investing in developing our global network of after-sales service centers to provide best-in-class support and expand our global reach. ‘’

Canaan Inc. has also just launched an online store to make purchasing our products easier for global retail clients. We’ve also been mining despite power interruptions, and the firm has 166.96 bitcoins on its balance sheet as of March 31, 2022.

Canaan’s revenue in the first quarter of 2022 was RMB1,356.1 million. Although raw material costs increased, especially for wafers, the net profit was RMB441.6 million. Both the volatility of Bitcoin prices and the threat of delisting exert pressure on the company.

Non-GAAP adjusted net income was RMB543.4 million (US$85.7 million) in the first quarter of 2022, up 279.5 percent from RMB143.2 million in the same period of 2021. The Company had cryptocurrency assets of 166.96 Bitcoins with a carrying value of US$7.1 million as of March 31, 2022.

During the first quarter of 2022, revenue amounted to RMB1,356.1 million (US$213.9m), up 236.7 percent from RMB402.8 million during the same period in 2021. The increase in revenue costs year over year was in line with revenue growth. 

About Canaan

Canaan Creative, otherwise known as Canaan, is a Chinese manufacturer of computer hardware. Nangeng “NG” Zhang founded Canaan in 2013 and it basically specializes in Blockchain servers and ASIC microprocessor solutions for Bitcoin mining. A reverse acquisition by Shandong Luyitong for $466 million USD was proposed in 2016. In its Nasdaq IPO in November 2019, Canaan raised $90 million.

Also Read: Tesla Releases Q4 2021 Financial Results: They’re Still HODLing the BTC

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Baisakhi Mishra

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