Bitcoin (BTC) miner Canaan reported a gross loss of $70.1 million and a net loss of $110.7 million in the second quarter of 2023, despite its increasing mining revenue and computing power. The company’s total revenue for the quarter was $73.9 million, up from $55.2 million in the first quarter. The increase in revenue was driven by a 43.3% increase in mining revenue to $15.9 million.
Canaan’s mining revenue growth was achieved despite the persistent rise in mining difficulty and hash rates, as well as the regulatory challenges some of its mining facilities encountered. The company’s total computing power sold during the quarter jumped by more than 44% to 6.1 million Thash/s.
Canaan CEO Nangeng Zhang attributed the company’s revenue growth to its efforts to drive sales across various fronts, including major clients, channels, and retail. He also highlighted the success of the company’s partnerships with channel clients and its online retail store.
However, Canaan CFO James Jin Cheng warned that the company faces challenges from the regulatory environment and the unpredictability of the crypto market. He said that these challenges include regulatory shifts across countries, counterparty risks within the evolving market, and the unpredictability of the broader economic landscape.
Canaan also suspended around 2.0 Exahash/s of its mining computing capacity after encountering regulatory issues in Kazakhstan. The company is also involved in a legal tussle in the United States over a breached “Joint Mining Agreement.”
Despite the challenges, Canaan remains optimistic about its future. The company said that it is “committed to providing high-quality mining products and services to our customers” and that it is “confident in our ability to overcome the challenges we face and continue to grow our business.”