Mining equipment provider Canaan announced that despite the company’s market conditions, its revenue increased by 53 percent to approximately $247 million.
Despite the difficult period, Canaan managed to exceed the earnings targets set for its shares. Nangeng Zhang, CEO of Bitcoin mining equipment firm Canaan, described the second quarter as a “challenging period” due to the falling Bitcoin price and COVID-19 quarantines in several cities in China.
Canaan Anticipates It Will Be Difficult In The Post-Quarter Period
Bitcoin miners’ gains dwindled after a market crash in early June that drove the price of Bitcoin (BTC) below $20,000. In addition, the culmination of the war in Ukraine in recent months and rising energy prices were among the reasons why miners’ earnings fell. Canaan increased its revenue by 53 percent during this period to approximately $247 million.
The company’s CEO, Nangeng Zhang, described the past quarter as a “challenging period” due to the Bitcoin price falling below $20,000 in June and the COVID-19 quarantines in various cities in China. Zhang added that the low Bitcoin price will “bring prolonged headwinds to our performance in the coming quarters.”
Company CFO James Jin Cheng said:
“We look forward to the coming quarters. We foresee a more challenging market environment driven by the lower Bitcoin price, generally rising energy prices, and various pandemic and geopolitical uncertainties globally. All of these can jeopardize demand and price for our products.”
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