Canaan reveals tough fourth quarter with revenue down 60%

Crypto Infrastructure • March 7, 2023, 6:27AM EST

Quick Take

Canaan saw big declines in revenue and sales of computing power in Q4 2022.
Canaan’s CEO noted that the company had expected a tough quarter.

Canaan Inc. shared its unaudited fourth-quarter and full-year financial results for 2022 — showing a big decline toward the end of the year.

Total computing power sold in Q4 2022 decreased by 45.8% to 1.9 million Thash/s from 3.5 million Thash/s in Q3. Worse yet, Canaan saw a decrease of 82.1% from Q4 2021.

Meanwhile, revenues decreased by 59.9% from Q3 2022 and 82.1% from Q4 2021. However, mining revenue increased by 16.3% from Q3 2022 and 368.2% from Q4 2021.

Year-over-year decreases are also reported in total computing power sold and revenues, with the former dropping by 32.4%.

"We went through a tough fourth quarter as the further sinking bitcoin price during the quarter led to lackluster market demand for mining machines as we expected," said Canaan Chairman and CEO Nangeng Zhang.

Canaan CFO James Jin Cheng noted that the company's gross loss was, in part, due to greater depreciation resulting from its growing bitcoin mining fleet.

About Author

Adam is the managing editor for Europe, the Middle East and Africa. He is based in central Europe and was a managing editor and podcast host at the crypto exchange OKX's former research arm, OKX Insights. Before that, he co-founded BeInCrypto.com, which he elevated into one of the leading crypto media brands at its peak as the editor-in-chief. Earlier, he served as the editor-in-chief at Bitcoinist.com. Before joining the blockchain and crypto industry, he worked for Looper.com, Grunge.com and SVG.com. He tweets via @XBT002 and can be emailed at [email protected].