The historical income from Bitcoin mining has not been able to compensate for the financial losses of Canaan Q2
Date: 2023-08-28 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
Bitcoin (BTC) miner Canaan's second-quarter ranking report showed the organization was operating at a loss throughout the quarter, with increased cryptocurrency and computing power revenues.
According to the unaudited financial report, the miner's income was $73.9 million, while his "value of income" was $143.9 million, for a total loss of $701 million from what he suffered losses. The firm posted a loss of $47.5 million in the first quarter.
Canaan's financial details provided by James Jin Cheng were very interesting: the company suffered a loss of $111.7 million (including inventory write-offs and provision for liabilities), and $54,775,000 worth of property was impaired.
The amounts received from BTC mining and computing power are growing.
In a report published by Canaan in the second quarter, it was said that its mining profits reached an all-time high of $15.9 million (almost 43% more than in the first quarter of this year).
The statement says that generating income from mining deserves special attention. The fact that Mayan's hashrate and algorithms are increasingly difficult to apply is taken into account. There are also regulatory issues that some of his businesses are experiencing.
Hearing by CEO Nangeng Zhang that the firm beat his forecast despite the relatively stagnant price of a flagship digital asset.
In addition, the miner said that the computing power he sold during the quarter increased by over 44% to 6.1 million Thash/s.
Zhang said the firm has put in a lot of effort to drive sales on all fronts. It has achieved good results in areas such as large customers and sales channels. He also noted that partnerships between the company and trading customers were successful. At the same time, the company's retail store has been regularly expanding with new customers from different geographic locations around the world.
CFO Cheng attributed the "better-than-expected" revenue results to improved sales and mining operations.
Contradictions in regulation
At the same time, Miner acknowledged that the unpredictability and regulatory environment of the crypto market could hinder its continued success.
Chen said:
Potential issues that may interfere with our business operations. These issues include regulatory shifts across countries, counterparty risk in this booming market, and the unpredictability of a broader market with many different things, as well as unforeseen events that could put pressure on the price of bitcoin.
Specifically, the CEO stressed that the firm was facing the adverse effects of regional regulatory changes and how someone else had violated the terms of an earlier agreement relating to its mining operations.
2.0 Exahash /s mining operations at Canaan.
Due to the fact that Kazakhstan is facing problems with the regulation of computing power in the country, problems have arisen. The firm is also pursuing legal battles in the United States over the breached mining agreement.
