Bitcoin miner maker Canaan records highest quarterly profit since 2019 IPO

By Osato Avan-Nomayo,

Chinese Bitcoin miner manufacturer Canaan Inc. has reported significant revenue figures for the second quarter of 2021.

Despite the price decline for Bitcoin (BTC) in Q2 2021, mining hardware maker Canaan has recorded significant business gains during the period.

According to Canaan’s unaudited Q2 financials published on Tuesday, the company recorded over $1 billion Chinese renminbi (about $167.5 million) in total net revenue for Q2. This figure marks the highest quarterly sales for the Bitcoin miner maker.

Indeed, Canaan’s Q2 revenue represents a 168% increase from the figures reported in its first-quarter financials and a 507.3% jump when compared to Q2 2020.

Total revenue was not the only quarterly improvement in Q2 as the report showed $37.9 million net profit for the period. According to the document, the figure marks the company’s highest quarterly net profit since its initial public offering back in 2019.

As previously reported by Cointelegraph, Canaan recorded a $33-million net loss in Q1 despite the positive Bitcoin price action that dominated the early months of 2021.

Significant inventory purchases from major mining establishments helped to improve Canaan’s revenue and profit performance in Q2. Tuesday’s report showed that the company delivered hardware totaling 5.9 million terahashes per second (TH/s) in the second quarter of 2021, a 200% increase from its delivery figures from Q1.

Related: Nasdaq listed Bitcoin miners urge China to open doors to green mining

Back in August, Genesis Digital Assets announced the purchase of 20,000 Bitcoin miners from Canaan, with plans to buy an additional 180,000 rigs.

Canaan CEO Nangeng Zhang described the company’s Q2 performance as “remarkable,” adding, “Despite unexpected regulatory policy dynamics and Bitcoin price volatility, we achieved record-high topline results as we delivered a robust 5.9 million TH/s of computing power to our clients.”

As of the time of writing, Canaan’s share price is up more than 5% but is yet to match its 2021 high above $36 recorded back in mid-March. The company’s stock is still net positive for the year in terms of price performance as it is up over 37% since Jan. 1.

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