Bitcoin Miner Canaan Reports 'Strongest Quarterly Sales' Despite Unexpected Regulatory Policy and Price Volatility

Bitcoin miner Canaan disclosed a record second-quarter 2021 results that showed that its total net revenue was $167.5 million. This is an increase of 507% from $2.45 million in the same period of 2020 and 168% from $62.6 million in the first quarter of this year. This marks “the strongest quarterly sales in the Company’s operating history,” it noted. Net income in Q2 was $37.9 million, again marking the highest quarterly net profit since the Company’s initial public offering (IPO) in 2019, compared to a net loss of nearly $191 million in Q2 of 2020 and a net income of 13.7 million in the first quarter of 2021. “Despite unexpected regulatory policy dynamics and Bitcoin price volatility, we achieved record-high topline results,” said Nangeng Zhang, Chairman, and CEO of Canaan. Going forward, for the third quarter of this year, the company is currently expecting total revenue to have a sequential increase of 10% to 30%. The company also sold 5.9 million Thash/s in computing power, up 200% from 2.0 million Thash/s in the first quarter of 2021 and up 126.9% from 2.6 million Thash/s in the same period of 2020. This increase was primarily due to an increase in the number of Bitcoin mining machines delivered, “driven by strong market demand,” the company said. Canaan holds $189 million in cash and cash equivalents, as of June 30, an increase from roughly $60.8 million as of Dec. 31, 2020. This surge was mainly due to a larger number of down payments the company received as a result of the larger volume of sales orders of Bitcoin mining machines and the net proceeds from its registered direct offering in May 2021.