Chinese cryptocurrency mining company Canaan will continue to expand its operations despite the current bear market and subsequent drop in profits, according to the company’s CEO.
Canaan posted a 90% decline in net income for the third quarter of 2022, the company officially announced on November 14. The firm’s net income in the third quarter amounted to 61.1 million renminbi (RMB), or USD 8.6 million, which represents a decrease of 88% compared to the same period in 2021Canaan pointed out.
The company’s revenue fell about 41% from RMB 1.7 million ($230,000) in the second quarter of 2022, while gross profit plummeted 75% from RMB 940 million ($130 million) in Q2. the previous quarter.
Amid Bitcoin (BTC) mining becoming less and less profitable due to the crypto winter, Canaan mining devices have also seen a significant drop in demand. According to the latest financial data, Canaan sold a total of 3.5 million terahashes per second (Th/s) of computing power in the third quarter, which is 37% less than in the previous quarter.
Despite the downward trend in its latest financial report, Canaan does not plan to slow down the company’s growth. On the contrary, Canaan continues to expand its operations around the world, including research and development projects as well as mining operations.CEO Nangeng Zhang said.
“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 talent to help support our business on a global scale.”Zhang noted.
He also mentioned that Canaan has expanded its US mining business this year, adding:
“We are facing a very tough industrial period as the price of Bitcoin is sinking to lows the market hasn’t seen in two years. Our priority is to conserve our cash, minimize our expenses and weather this market downturn.”
In addition to scaling around the world, Canaan has been working on new mining solutions this year. In October, Canaan officially launched its new series of mining devices, AvalonMade 13. The new series is based on advanced IC technology for specific applications, and includes two models with hash rates of 110 Thash/s and 130 Thash/s.
Canaan did not immediately respond to Cointelegraph’s request for comment.
“The launch of the next-generation product reaffirms our confidence in the core value of the Bitcoin ecosystem and reflects our constant efforts in the research and development of supercomputing technology,” Zhang stated.
As Cointelegraph previously reported, Canaan recorded a 117% increase in gross profit in the second quarter of 2022 compared to the same period in 2021. The company still expected financial deterioration due to the ongoing bear market.
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