China-based crypto mining entity Canaan is reportedly carrying out its operations expansion regardless of bearish movements in the market and an associated plummet in earnings, per the firm’s CEO.
Specifically, Canaan reportedly published a 90% over-the-quarter decline in net income in the third quarter of this year. The firm’s Q3 net income reached 61.1 million renminbi (RMB), or $8.6 million, which is a 88% plummet from the similar time frame of last year, Canaan noted.
The company’s revenues suffered from an approximate 41% plummet from 1.7 million RMB ($230,000) in Q2 2022, while gross profit witnessed a decline of 75% from 940 million RMB ($130 million) posted in the previous quarter.
During the scene when Bitcoin mining is offering a reduced return-of-investment because of the crypto winter, Canaan’s mining devices have also come across a major drop in demand.
As revealed via the most recent financials, Canaan sold an overall figure of 3.5 million terahashes per second (Th/s) of computing power in Q3, or 37% less than in the previous quarter.
Regardless of a visible downward pattern in its latest financial report, Canaan has no plan of pumping the brakes on the firm’s growth. On the contrary, Canaan carries on to scale its operations throughout the globe, including research and development initiatives along with mining operations, per CEO Nangeng Zhang.
“As part of our ongoing effort to strengthen our research and development capabilities, we are expanding our Singapore headquarters with promising local research and development talents to help support our business on a global scale,” Zhang noted.
“We face a very tough industry period as the Bitcoin price is sinking to lows the market has not seen in two years. Our priority is to conserve our cash, minimize our expenses, and endure this market downturn.” He additionally disclosed that Canaan has been putting in efforts to widen the scope of its mining business in America in 2022.