Simply put
- Canaan’s revenue fell 68% sequentially to $62.7 million, and its net loss widened to $88.7 million.
- To ensure “viability,” the company cut total operating expenses for the quarter to $31.4 million while cutting labor costs.
- Amid volatility in crypto prices, CEO Nangeng Zhang is steering Canaan toward high-performance computing and AI infrastructure.
Canaan stock fell sharply on Tuesday. Bitcoin miner The hardware maker reported a second consecutive quarter of a loss, tightening as turmoil in energy prices clouded the company’s outlook amid a shift in computing infrastructure.
A company based in Singapore that manufactures Bitcoin mining equipment. disclosed First quarter net loss was $88.7 million. The results represent a widening of losses from the previous three months, when Canaan posted a net loss of $85 million.
The company’s stock price fell more than 13% to $0.418 after the opening bell on Tuesday, according to . Yahoo Finance. The move pushed the stock back towards its all-time low of $0.38 hit last month.
CEO Nangeng Zhang said in an earnings call that Canaan faced a difficult quarter as falling digital asset prices made Bitcoin mining less profitable. He noted that business was also affected by a new factor: the escalating conflict between the United States and Iran.
“The industry remains in a cautious environment due to uncertainties related to the situation in the Middle East, energy prices, global liquidity and policy,” he said. “This environment has put a lot of pressure on our company, which is undergoing a period of transition.”
Although Canaan derives most of its revenue from Bitcoin mining and hardware sales, the company has begun prioritizing a shift to a computing infrastructure that mirrors that of its competitors. Airen, hive digital technologyand keel infrastructureIt has capitalized on the AI boom by meeting the growing power needs of technology companies.
The company reported revenue of $62.7 million, down 68% from $196.3 million quarter-over-quarter. The majority of sales came from Canaan’s products division, which generated $42.9 million as the company announced it had completed final deliveries on a large order from the United States.
Zhang said payroll costs decreased $2.1 million sequentially, coupled with the company’s moves to strengthen its “viability” during the quarter. Overall, the company’s operating expenses decreased from $38.2 million to $31.4 million.
Canaan announced that it mined 257 Bitcoins in the three months ended March 31st, a performance that was affected by weather-related energy cuts in North America. Meanwhile, the company’s treasury increased to 1,807 Bitcoin and 3,951 Ethereum, for a total value of $146 million.
During the quarter, Canaan acquired a 49% interest in Cipher Mining’s ABC project in West Texas, expanding the company’s access to U.S. power infrastructure. Chan said the move is related to Canaan exploring opportunities related to AI and high-performance computing, providing “strategic flexibility” for the company.
