Home Bitcoin News Canaco Resources (CAN), Nvidia (NVDA) – Two Contrary Bitcoin Tales: How Crypto Mining Equipment Is Buoying Nvidia’s Numbers and Pushing Down Canaan’s

Canaco Resources (CAN), Nvidia (NVDA) – Two Contrary Bitcoin Tales: How Crypto Mining Equipment Is Buoying Nvidia’s Numbers and Pushing Down Canaan’s

4 min read

Nvidia Company (NASDAQ:NVDA) stated on its annual investor day it’s elevating its first-quarter income estimate for newly launched mining {hardware}. On the identical time, provide chain points overshadowed cryptocurrency-centric Canaan Inc’s (NASDAQ:CAN) This fall numbers.

What Occurred: Nvidia stated it’s revising its Q1 income estimate for its CMP product meant for industrial-scale cryptocurrency mining to $150 million, which is 3 times greater than the $50 million beforehand anticipated. 

“We’re experiencing broad-based energy, with all our market platforms driving upside to our preliminary outlook,” stated Colette Kress, CFO of NVIDIA.

“General demand stays very robust and continues to exceed provide whereas our channel inventories stay fairly lean. We anticipate demand to proceed to exceed provide for a lot of this yr,” stated Kress.

On the opposite aspect of the coin, Canaan stated provide chain disruptions brought on by COVID-19 had impacted its revenues within the fourth quarter of 2020.

“Resulting from provide chain disruptions, as the worth of Bitcoin rallied in late 2020, we skilled a surge of demand for high-quality mining machines each in and out of doors of China,” stated Tong He, CFO of Canaan.

Why It Issues: Canaan stated its This fall 2020 revenues fell to RMB 38.2 million ($5.9 million) from RMB 463.2 million ($70.72 million) a yr in the past and RMB 163 million ($24.9 million) within the previous quarter. 

The Hangzhou, China-based firm stated that year-over-year and quarter-over-quarter declines “had been primarily as a result of decreases in whole computing energy offered.”

“Within the fourth quarter of 2020, though the market demand elevated considerably with the rising of Bitcoin’s value, the Firm didn’t have enough stock to ship to its clients,” stated the corporate in an announcement.

Bitcoin (BTC) traded 0.78% greater at $60,323.33 at press time, whereas Ethereum (ETH) traded 0.54% greater at $2,156.64.

See Additionally: Bitcoin Mining Equipment Company Canaan Sued By Investor Alleging Securities Law Violations

Nvidia, in the meantime, stated that whereas its Q1 2022 isn’t but full whole income for the interval is monitoring above the $5.3 billion outlook it supplied at its fiscal year-end earnings name.

In February, it was reported that Nvidia raked in between $100-300 million from Ethereum miners within the fourth quarter regardless of dealing with a graphics processing unit crunch.

Value Motion: Nvidia shares closed nearly 5.6% greater at $608.36 on Monday within the common session and fell 0.38% within the after-hours buying and selling. On the identical day, Canaan shares slid nearly 30% within the common session to $13.14 and rose 1.14% within the after-hours buying and selling to $13.29.

Learn Subsequent: Unlike Nvidia, AMD Doesn’t Mind If You Use Its Gaming GPUs To Mine Ethereum

Source link

Leave a Reply

Your email address will not be published.

20 + 12 =

Check Also

The crypto market had a rough weekend –bitcoin falls through $50,000 – ForexLive

bitcoin every day Cryptocurrencies have been bought exhausting this weekend in a painful c…