Home Bitcoin News Bitcoin Mining Crypto mining rig maker Canaan reports record-high profits – KrASIA

Crypto mining rig maker Canaan reports record-high profits – KrASIA

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Chinese language cryptocurrency mining machine producer Canaan recorded outstanding progress in Q2 2021 regardless of a sweeping crypto crackdown in China and swings within the value of bitcoin, as market demand for the corporate’s {hardware} stays sturdy.

The Hangzhou-based agency noticed its income attain a file excessive of RMB 1.08 billion (USD 167.5 million) within the second quarter ended June 30, in accordance with its financial report launched on Wednesday. As market demand for bitcoin mining machines grows, Canaan offered computing energy amounting to five.9 million TH/s—the strongest quarterly complete gross sales within the firm’s historical past.

Canaan achieved internet income to the tune of RMB 427.1 million (USD 66.2 million), realizing practically 900% year-on-year progress atop RMB 43.3 million (USD 6.7 million) in 2020.

Canaan additionally recorded important internet earnings of RMB 245.0 million (USD 37.9 million), in comparison with RMB 1.2 million in Q1 when there was a value spike in bitcoin.

The corporate’s working bills went from RMB 62.2 million (USD 9.6 million) in Q2 2020 to RMB 261.6 ml (USD 40.5 million) within the newest quarter, marking a 320% enhance because it recruited new R&D workers and elevated its advertising finances.

“Regardless of surprising regulatory coverage dynamics and bitcoin value volatility, we achieved record-high top-line outcomes,” stated Zhang Nangeng, chairman and CEO of Canaan.

Over the summer season, the Chinese language authorities ordered all mining farms within the nation to close down. This led to a mass migration of miners to North America and Europe. With fewer miners on-line, bitcoin provides dived, value volatility elevated, and demand for brand new rigs skyrocketed. On this development, mining machine makers reaped the advantages.

Judging from the whole energy consumed by electricity-hungry cryptocurrency mining machines, the frenzy continues. Bloomberg reported that the mining business has already used extra energy thus far this 12 months than in all of 2020, and the speed of energy consumption is anticipated to turn into even steeper. By the top of this 12 months, the sector can have used 91 TWh of vitality, practically as a lot as all the annual energy consumption of Pakistan.

Canaan expects complete revenues to extend by 10–30% for the subsequent quarter. The corporate plans to deploy much more computing energy to grab the large alternatives of bitcoin mining, Zhang famous.

Learn this: As Myanmar’s economy crumbles, some see crypto as the nation’s path to financial freedom

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