Home News Canaan records highest quarterly profit since 2019 IPO

Canaan records highest quarterly profit since 2019 IPO


Canaan records highest quarterly profit since 2019 IPO. In the second quarter of 2021, the profit of computer hardware manufacturer Canaan amounted to $167.5 million. This was the highest volume of quarterly sales in the company’s history.

According to the financial results report, the total computing power sold during the period reached 5.9 million TH/s. The indicator exceeded the results for the first quarter by 200%. Compared to 2020, in terms of capacity, sales increased by 126.9%.

“The steady growth year—on—year and by periods is mainly due to an increase in the number of Bitcoin mining devices delivered, due to high market demand,” the press release says.

The best result

The company made a net profit of $37.9 million. This is the best result since Canaan went public in November 2019.

According to the results of the first quarter, the company’s profit was about $186,500.

Canaan CEO Nangeng Zhang noted that the good financial performance provided “significant pre-orders” for the equipment. Largely due to the advance payments, the company’s cash at its disposal reached $189 million as of June 30, he added.

In April, Canaan agreed to supply $93.63 million worth of miners to Genesis Digital Assets, with which it entered into a strategic partnership. Later in the same month, Mawson Infrastructure Group ordered 11,760 bitcoin mining devices from the manufacturer.

In June, Canaan announced an expansion of cooperation with Genesis Digital, under which it will supply another 10,000 ASIC miners.

AI chip for edge computing Kendryte K510

Commenting on the results of the quarter, Canaan CEO said that the company will continue to develop its own mining business. He also reported on the “demand from many customers” for the company’s AI chip for edge computing Kendryte K510.

Canaan shares rose almost 5% in the premarket compared to the closing price.

Recall that after the release of Canaan on the stock exchange, Principal at Iterative Capital Management, Leo Zhang, predicted the company’s departure from the mining industry to the AI sphere. The specialist explained this by the fact that Canaan is mostly focused not on developing solutions for mining, but on creating AI chips.

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