Chinese mining giant Canaan doubles profits despite the blanket crypto ban

Main Chinese language cryptocurrency miner producer Canaan seems to don’t have any points with the native on crypto, as the corporate’s total efficiency has continued to develop in 2022.

Chinese Mining Giant Canaan Doubles Profits Despite The Blanket Crypto Ban

Canaan formally introduced monetary outcomes for the second quarter of 2022 on Thursday, reporting a 117% enhance in gross revenue from the identical interval of 2021. In keeping with the agency, the Q2 income amounted to 930 million renminbi (RMB), or almost $139 million.

Chinese Mining Giant Canaan Doubles Profits Despite The Blanket Crypto Ban

The corporate’s Q2 internet revenue was 608 million RMB, or $91 million, or a 149% enhance from 425 million RMB in the identical interval final yr. Canaan famous that overseas forex translation adjustment in Q2 was an revenue in comparison with earlier losses because of the U.S. greenback appreciation towards RMB throughout Q2.

Chinese Mining Giant Canaan Doubles Profits Despite The Blanket Crypto Ban

Regardless of posting important income, Canaan has discovered the second quarter a difficult interval because of Bitcoin () plummeting under $20,000 in June, the corporate’s CEO Nangeng Zhang stated.

Chinese Mining Giant Canaan Doubles Profits Despite The Blanket Crypto Ban

“The COVID-19 containment lockdown in key cities in China additionally introduced extreme disruptions to our each day operations and demand for our AI chips,” he famous.

Chinese Mining Giant Canaan Doubles Profits Despite The Blanket Crypto Ban

Zhang talked about that Canaan has been increasing its international presence, significantly establishing worldwide headquarters in Singapore. The agency has additionally been working to scale its mining enterprise, producing extra with an improved energy provide. As of late June, Canaan held a complete of 346.84 , or $8.1 million, the CEO stated, including:

Chinese Mining Giant Canaan Doubles Profits Despite The Blanket Crypto Ban

“We’re totally conscious of the downward strain from the Bitcoin value because the final fourth quarter and count on it to convey extended headwinds to our efficiency within the coming quarters. However, we consider within the distinctive worth of Bitcoin and its long-term prospects.”

Chinese Mining Giant Canaan Doubles Profits Despite The Blanket Crypto Ban

Canaan’s chief monetary officer James Jin Cheng echoed the CEO’s remarks, stating that the corporate expects a more durable market setting from the decrease Bitcoin value degree in addition to elevated power value and varied pandemic and geopolitical uncertainties. He acknowledged:

“Because the Bitcoin value additional decreased within the second quarter, we responsively lowered our product value for spot gross sales to shoulder the strain with our shoppers. […] We count on the gross margin to lower dramatically within the second half of this yr.”

The continued cryptocurrency winter shouldn’t be the one concern of crypto mining firms in China although. As beforehand reported, China introduced a blanket on all crypto operations — together with mining and buying and selling — in September 2021, pushing many corporations to power international growth and escape to different nations. Previous to the ban, China was taking down a number of crypto mining farms in a transfer to save lots of power and curb crypto operations within the nation.

Associated: Bitcoin mining income jumps 68.6% from the lowest-earning day of 2022

Apparently, the “nice Chinese language crypto ban” has not affected native crypto fans and corporations an excessive amount of as far as China reemerged because the second-largest Bitcoin mining nation by January 2022. In keeping with information from the Cambridge Bitcoin Electrical energy Consumption Index, China nonetheless hosts 21% of the entire international Bitcoin hash fee, following solely the US, which produces 38%.



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