Canaan Inc., a Chinese cryptocurrency mining firm and computing resource provider, is now open reported Despite the ban on cryptocurrency mining and transactions activities in China, there was a higher than expected revenue.
According to the company, total revenues reached RMB1,652.7million ($246.7 million). This figure was 21.9% higher than the RMB1,356.1million it reported in its first quarter 2022. This remarkable revenue is 52.8% higher than the RMB1,081.8 millions recorded in the same period in 2021.
Canaan Inc’s revenue was remarkable for the fact that the company’s computing power dropped in the second quarter. According to the published figures, the total computing power sold was 5.5 Million Thash/s. This represents a 27.5% increase over 4.3 million Thash/s during the first quarter 2022 and 7.7% decrease from 5.9 million Thash/s during the same period 2021.
Canaan Inc trades on the Nasdaq Global Select Market. However, Canaan Inc has its headquarters in Beijing. The firm’s Q2 performance has not really shown any form of dearth in operations and revenue despite the hostility of the Chinese government towards crypto activities as well as the overall impact of the crypto winter.
“The solid topline performance primarily resulted from the sequentially increased computing power sold and relatively high average selling price we secured with contract sales from previous quarters where the Bitcoin price The level was higher. As the Bitcoin price further decreased in the second quarter, we responsively lowered our product price for spot sales to shoulder the pressure with our clients,” said James Jin Cheng, Chief Financial Officer of Canaan.
While Canaan’s financials show it is cash flow positive, the situation was notably different for other key stakeholders in the crypto mining ecosystem like Core Scientific, which It sold more of its mined BTC Some of its liabilities and other debts can be offset.