Shares of cryptocurrency mining rig maker Canaan traded up 0.77% in U.S. trading on Thursday after the company said net income expanded in the second quarter from a year earlier despite the fallout from Covid-19 lockdowns in China and challenging market conditions.

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Fast facts

  • The Beijing-based mining machine maker booked 1.65 billion yuan (US$246.7 million) in revenue in the second quarter of this year, up 52.8% year-on-year, according to the company’s latest earnings report released on Thursday.
  • Its net income expanded to 608.9 million yuan, compared to a 245 million yuan net income from a year earlier.
  • Total computing power sold dropped 7.7% year-on-year to 5.5 million terahashes per second in the second quarter of this year, the Nasdaq-listed company said, adding that it lowered its product price for spot sales as the Bitcoin price went down in the quarter.
  • “Looking forward to the coming quarters, we see a tougher market environment from the lower Bitcoin price level, overall increased energy price, and various pandemic and geopolitical uncertainties globally, which may all jeopardize the demand and price for our products,” James Jin Cheng, chief financial officer of Canaan, said in the earnings report.
  • Bitcoin miners were facing headwinds with Canadian miner Hut 8 and U.S.-based Marathon Digital Holdings, both posting widened losses in the second quarter.
  • In the third quarter, Canaan expects its total net revenues to decrease 17% to 32% from the prior-year period.
  • Despite tough market conditions, Canaan is still expanding in North America and is building local warehouses, logistics and repair centers there while exploring mining operation opportunities, Nangeng Zhang, chairman and chief executive officer of Canaan, said on Thursday in an earnings call.

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