Zach Anderson
Nov 20, 2024 13:09
Canaan Inc. (NASDAQ: CAN) studies a big 120.9% year-over-year income enhance for Q3 2024. The corporate offered 7.3 million Thash/s computing energy, regardless of a difficult market.
Canaan Inc. (NASDAQ: CAN), a frontrunner in high-performance computing options, has introduced its unaudited monetary outcomes for the third quarter of 2024. The corporate reported a considerable enhance in whole income, reaching $73.6 million, marking a 120.9% year-over-year development, in keeping with PR Newswire.
Monetary Highlights
The corporate exceeded its earlier income steering of $73 million, pushed by a strong efficiency in computing energy gross sales, which elevated by 93.8% year-over-year, reaching 7.3 million Thash/s. Canaan’s mining income was reported at $9 million, with 147 Bitcoins mined, every producing a median income of $61,034.
Regardless of difficult market circumstances, Canaan managed to slender its loss from operations to $56.8 million, a 49.6% enchancment from the earlier yr. The corporate’s strategic execution, notably in large-scale deliveries of its A14 mining machines, performed an important function in these outcomes.
Operational Developments
Chairman and CEO Nangeng Zhang highlighted the corporate’s strategic developments regardless of the trade’s challenges. The launch of the A15 collection, identified for its superior efficiency, has begun on a small scale, with plans to ramp up deliveries within the fourth quarter. Canaan can also be increasing its presence in North America, securing orders from corporations like CleanSpark and HIVE for its Avalon collection.
Jin “James” Cheng, CFO of Canaan, emphasised the corporate’s strengthened manufacturing and supply capabilities, which led to the best gross sales of mining machines in almost two years. The corporate additionally elevated its Bitcoin holdings to a file excessive of 1,231 Bitcoins, reinforcing confidence in cryptocurrency property’ long-term worth.
Monetary Metrics
Product income for Q3 2024 was $64.6 million, up from $61.8 million in Q2 2024 and $29.9 million in Q3 2023. The rise was attributed to increased computing energy gross sales and common promoting costs. Nonetheless, Canaan reported a gross lack of $21.5 million and a web lack of $75.6 million for the quarter.
Strategic Investments
Canaan’s strategic focus contains increasing its mining operations in Texas and Pennsylvania. The corporate has entered a joint mining settlement with Luna Squares Texas LLC and amended its internet hosting settlement with Stronghold Digital Mining. These initiatives goal to spice up Canaan’s computing energy and operational effectivity.
The corporate additionally secured important orders for its Avalon miners, together with 3,800 items for CleanSpark and 11,500 items for HIVE, indicating sturdy demand for its high-performance mining options.
Future Outlook
Wanting forward, Canaan tasks whole revenues of roughly $80 million for the fourth quarter of 2024. The corporate stays centered on leveraging its technological developments and strategic investments to navigate market challenges and capitalize on rising alternatives.
Picture supply: Shutterstock
