Canaan Posts Revenues of US$55.2 Million in Q1 2023, Despite Gross Loss of US$47.5 Million
Canaan Inc., a leading high-performance computing solutions provider, announced its unaudited financial results for the first quarter of 2023. The company reported total revenues of US$55.2 million, a decrease from US$58.3 million in the previous quarter and US$201.8 million in the same period of 2022. Canaan sold a total computing power of 4.2 million Thash/s, compared to 1.9 million Thash/s in the previous quarter and 4.3 million Thash/s in the first quarter of 2022.
The mining revenue for the first quarter of 2023 was US$11.1 million, representing an increase of 3.3% from the previous quarter and a significant increase of 130.2% compared to the same period of 2022.
The company’s chairman and CEO, Mr. Nangeng Zhang, acknowledged the challenging start to the year due to uncertainties in the market but expressed confidence in Canaan’s long-term prospects. He highlighted the company’s continued investment in research and development, production capabilities, and sales system enhancements to reach more global customers.
Despite a contraction in sales revenue and industry-wide reduction in selling prices, Mr. James Jin Cheng, the CFO of Canaan, expressed confidence in the company’s direction. He mentioned securing several large contract orders and increasing installed hash rates as positive developments. Canaan aims to strengthen its competitive position in the next Bitcoin price cycle through investments in foundry capacity and mining farm resources.
The company’s financial results for the first quarter of 2023 showed a gross loss of US$47.5 million, compared to a gross loss of US$64.1 million in the previous quarter and a gross profit of US$123.5 million in the same period of 2022. Canaan reported a net loss of US$84.4 million for the first quarter of 2023, compared to a net loss of US$91.6 million in the previous quarter and a net income of US$65.1 million in the same period of 2022.
Canaan had cash and cash equivalents of US$72.0 million as of March 31, 2023, compared to US$101.6 million at the end of December 2022. The company also held cryptocurrency assets, primarily comprising 623 bitcoins, with a carrying value of US$13.4 million.
In recent developments, Canaan implemented an at-the-market equity offering program and utilized it for fundraising. The company sold 1,532,219 ADSs with net proceeds of approximately US$4.2 million. Canaan sees this program as a flexible mechanism to access public capital markets in the future.
Despite the challenges faced in the first quarter of 2023, Canaan remains optimistic about the future of the industry and its ability to contribute to the growing adoption of Bitcoin. The company continues to innovate and develop next-generation computing power while striving to benefit society with its cutting-edge semiconductor design expertise.
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