Crypto.net Mining Revenue Jumps 43% in Q2, Net Loss Climbs 31%

Q2 2023 Financial Results for Canaan

Canaan, a Bitcoin mining company, recently released its unaudited financial results for Q2 2023. The figures showed growth in computing power sales and Bitcoin (BTC) mining revenues, even though the company reported a net loss of $110 million — an increase of 31% from Q1.

The Nasdaq-listed firm highlighted a number of reasons for the rise in revenue and a key factor that included a $54 million inventory write-down and equipment impairment.

Canaan’s total revenue for Q2 2023 was $73.9 million, higher than the $55.2 million of the previous quarter. This consisted of $57.9 million from products revenue and $15.9 million from Bitcoin mining revenue.

The BTC mining revenues experienced a 43.3% growth compared to Q1’s $11.1 million. This was more than double the $7.8 million of Q2 2022. The company attributed this surge to the recovery in Bitcoin prices and the resulting increase in Bitcoin rewards.

Canaan Reports Significant Growth in Computing Power

Canaan reported significant growth in its total computing power sold, reaching 6.1 million terahashes per second, up 45% quarter-on-quarter, with the sector becoming a major driver of revenue for the company.

Despite this growth, the company reported net losses of $110.7 million in Q2, which it attributed to non-cash accruals and provisions reflecting changes in selling prices, regulatory shifts and partner agreements. Canaan chief financial officer James Jin Cheng added that the losses included inventory write-down, provision for commitment reserve and impairment of property and equipment, which totaled $54.7 million.

As of June 2023, Canaan’s listed cryptocurrency holdings included 1,125 BTC valued at $28.8 million. Of this, 747 BTC are owned by Canaan, while 378 BTC are attributed to customer deposits.

Canaan has suspended its 2.0 exahashes per second of mining computing power based in Kazakhstan to ensure legal compliance with the upcoming Rules for Licensing of Digital Mining Activities. The company is obtaining a specialized license to continue its operations, however this may result in a reduction of its Q3 BTC generation due to the offline hardware.

Crypto.net has been exploring the integration of three features into Web 3.0, such as crypto net, crypto bitcoin, and crypto this week. Many have been asking when Web 3.0 is coming and what products it will offer. The Federal Reserve has recently released a statement regarding crypto.net.