Canaan Inc. (NASDAQ: CAN) (“Canaan” or the “Company”), a leading high performance computing solutions provider, today announced its new revenue guidance for the second quarter ended June 30, 2021 (“Q2 2021”). Based on sales order visibility and business outlook, the Company is expected to record total net revenues of between US$150 million and US$250 million for Q2 2021, with total shipments for the quarter either maintaining or surpassing that of Q1 2021.
With the mass production of a new generation of mining machines, the Company’s product yield has continued to improve. Through close collaboration with foundry partners, the Company’s chip manufacturing process has also been enhanced significantly. As of today, such advances have led to industry leading performances in both chip speed and yield. In the second quarter to date, in addition to the delivery of mining machines, Canaan has also secured a number of large purchase orders of future contracts. Furthermore, the Company has locked in the fab capacities of its foundry partners for the next 12 months to fulfill these future contracts.
In terms of mining machine sales strategy, Canaan has reprioritized its sales focus towards longer-term and larger-scale customers. As of May 31, 2021, the Company has had a total order volume of over 149,000 mining machines with over US$190 million in advance payments. In regard to future contracts, Canaan has signed purchase orders of more than 10,000 mining machines with both Mawson, a US-listed company, and Genesis, an international Bitcoin mining giant. In aggregate, the Company has had 29 different customers, each with purchase orders of more than 1,000 mining machines, accounting for 94% of its total orders this quarter. The Company’s partnerships with such large-scale customers generally involve multi-batch mining machine purchases over a long period of time. These characteristics have helped reduce the impact of short-term fluctuations in cryptocurrency prices and to ensure the stability of production and delivery schedules.
Since the second half of last year, capacity shortages in the global semiconductor supply chain have become a common challenge for chip makers around the world. In order to secure the production and supply of products, Canaan has initiated negotiations with its suppliers, opting to provide them with a higher unit price and longer upfront payments. To date, the Company has paid its suppliers a total of US$200 million in advance payments.
Established in 2013, Canaan (NASDAQ: CAN), is a technology company focusing on ASIC high-performance computing chip design, chip research and development, computing equipment production and software services. The company’s vision is “super computing is what we do，social enrichment is why we do”. Canaan has a rich experience in chip design and streamlined production in the ASIC field. In 2013, it released and mass produced the world’s first ASIC bitcoin mining machine. Canaan maintains its industry leadership in advanced process chip technology by launching one to two major product iterations every year, and providing energy-efficient computing equipment for the cryptocurrency mining industry. In 2018, Canaan released the world’s first RISC-V architecture commercial edge AI chip, further harnessing the potential of ASIC technology in the field of high-performance computing and artificial intelligence.
For more information, visit: canaan.io