Shares in Canaan surged on Tuesday after the Bitcoin mining {hardware} maker reported its third-quarter revenues doubled from final yr, pushed by a excessive demand for tools as a number of miners noticed revenues enhance.
Canaan stated on Tuesday that its whole Q3 revenues elevated 104% from final yr to $150.5 million attributable to a “substantial quantity of recent orders,” with its mining tools revenues making up the lion’s share at $118.6 million.
James Jin Cheng, the miner’s chief monetary officer, stated within the firm’s earnings name that numerous gross sales got here from purchasers within the US, who “began actively inserting sizable and repeating orders.”
“Gross sales of North American prospects contributed 31% of our whole income in quarter three. We’re joyful to witness the sturdy demand restoration of the North American market,” he added.
Different miners have additionally been reporting sturdy earnings. HIVE Digital reported a 285% earnings enhance on Monday, whereas BitFuFu doubled its third-quarter income off the again of demand for cloud mining and tools as miners sought to capitalize on the rising worth of Bitcoin.
Canaan shares leap on earnings
Shares in Canaan (CAN) closed buying and selling on Tuesday up practically 21% to $1.03 on the corporate’s earnings, with beneficial properties extending by practically 2% after the bell to $1.05.
Canaan’s inventory is down practically 50% this yr as many Bitcoin miners have pivoted to powering synthetic intelligence, because the price and issue of mining have elevated whereas Bitcoin’s worth has fallen.
The corporate reported it made $30 million in mining income over Q3, up 241% yr over yr, and a web lack of $27 million in comparison with $75 million a yr in the past.
Associated: TeraWulf Q3 income up 87% as Bitcoin practically doubles over the yr
Canaan mined 267 Bitcoin (BTC) at a mean income of $114,485 per coin and elevated its holdings to 1,610 Bitcoin by the tip of October.
CEO pitches Bitcoin mining as one of the best ways to earn
Canaan CEO Nangeng Zhang informed traders on an earnings name that some miners going through steadiness sheet stress and share worth efficiency points are shifting towards AI, lowering mining operations over the medium time period.
Nevertheless, he nonetheless thinks Bitcoin mining is a viable possibility whereas the transition is underway, as a result of the deployment of AI infrastructure takes time.
“Our prospects, together with ourselves, are desirous about the best way to construct AI-ready mining services for the long run,” he stated. “At this stage, deploying extra Bitcoin miners continues to be one of the best ways to allocate power as we speak and generate revenues from this date, not ready for an additional one or two or three years.”
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