Canaan reports record profit in the second quarter of 2021
Canaan, one of the largest Bitcoin miner manufacturers on the market, has posted a record profit in the past quarter of 2021 since its IPO in 2019.
The Chinese manufacturer recorded significant growth in its business despite the decline in the value of the main cryptocurrency on the market in the second quarter of 2021. The latest report released by Canaan officials noted that the company's total net revenues for the past quarter exceeded $1 billion yuan, the equivalent of $167.5 million.
Thus, revenue in the second quarter is 168% higher than the indicators in the company's financial report for the first quarter of 2021. If we compare it with Canaan's indicators for the second quarter of 2020, then their growth is more than 507.3%. Recall that the first quarter of this year was much less successful for Canaan the company's net loss amounted to more than $33 million. The weird thing is that Bitcoin dominated the market at the time, showing good growth in the first months of 2021.
In addition to total net sales, another “quarterly improvement” was net income, which surpassed $37.9 million in the same period. It also became the highest since Canaan's public offering back in 2019.
The improvement in performance was most likely influenced by impressive purchases from the largest mining companies from Canaan. They supplied them with a total capacity of more than $5.9 million TH/s, which is 200% more than the capacity supplied by Canaan in the first quarter of this year.
For example, Genesis Digital Assets, which has successfully collaborated with Canaan, has acquired 20,000 Bitcoin miners from the latter, and intends to increase the purchase up to 180,000 devices in the future.
Against the backdrop of positive news, the growth of the company's shares was also not long in coming - their price increased by more than 5%, but still falls short of the annual maximum of over $36. It was recorded in March this year. Although, in general, the dynamics are positive, because since January 2021, Canaan shares have grown by almost 40%.
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