Canaan (NASDAQ: CAN) a leading high-performance computing solutions provider, announced its financial results for the fourth quarter and financial year which ended on December 31, 2022.
Fourth Quarter Operating and Financial Highlights
Against the backdrop of declining Bitcoin price and macroeconomic headwinds, Canaan sold a total of 1.9 million Thash/s of computing power in the fourth quarter of 2022, a decrease from the 3.5 million Thash/s sold in the previous quarter. This translated to revenue of US$56.8 million in Q4 2022, a decrease of 59.9% from the third quarter of 2022. Despite this, Canaan’s Q4 2022 revenue exceeded the company’s previous guidance range, driven by the strength of its mining business, and its ability to meet client needs.
Full Year 2022 Operating and Financial Highlights
Over the course of 2022, Canaan sold a total of 15.1 million Thash/s in computing power, resulting in the company recording a full year revenue of US$634.9 million. Canaan’s self-operating mining operations contributed US$31.7 million in 2022, representing more than 10x increase from US$3.14 million in 2021.
Mr. Nangeng Zhang, Chairman and Chief Executive Officer of Canaan, said: “It has been a tough fourth quarter for Canaan, as well as the Bitcoin industry as we concluded 2022. Declining Bitcoin prices resulted in weak demand for our mining machines, and this had an impact on our revenues. Despite this, the revenue Canaan recorded exceeded previous earnings guidance we provided and we have also achieved 4 EH/s hash rate installed for mining at the end of February 2023. Looking ahead, we will continue to stay the course and make strategic invesments to bolster our production capacity, expand our mining operations, and strengthen the resiliency of our supply chains to prepare for the next Bitcoin bull cycle. As the first Nasdaq listed blockchain company, and a veteran in the industry, I am confident that we will prevail against current market challenges and emerge ready for growth when the industry recovers.
Doubling Down On Research And Innovation
As a reflection of Canaan’s long-term confidence for Bitcoin, the company made a strategic decision to increase spend on R&D despite challenging market conditions. R&D expenses in the fourth quarter of 2022 were US$32.4 million, representing an increase of 89.3% in the third quarter of 2022 and an increase of 99.5% from in the same period of 2021. The increase focus in R&D has yielded results when Canaan launched its new generation A13 mining machines in October last year, achieving new highs in computing power and energy efficiency. In parallel, Canaan has also been strengthening relationships with its foundry partners to secure the limited surplus production capacity of wafers to ensure it is bring new generations of products to market more effectively.
About Canaan
Canaan is a leading provider of supercomputing solutions, distinguished for superior cost-efficiencies and performance. In addressing the limitations of today’s computing hardware, Canaan strives to advance the world we live in by powering transformative technologies.
Canaan is renowned for having invented the world’s first ASIC-powered Bitcoin mining machine in 2013, radically catalysing the growth of a computationally advanced Bitcoin mining sector. Today, Canaan continues to be the second largest designer and manufacturer of Bitcoin mining machines globally.
Developed through academic research, rigorous expertise in semiconductor design, and backed by a robust network of strategic partners, Canaan continues to expand its suite of advanced hardware offerings, exploring opportunities across some of the world’s most exciting emerging technologies.
For more information, visit: canaan.io