Canaan’s Revenue Drops by 72%

Mining giant, Canaan, has revealed a 5% revenue decrease in Q1 2023 compared to Q4 2022, according to its recently released financial statement. The reported revenue of $55.2 million represents a significant 72% drop compared to Q1 2022. The company’s CFO, James Jin Cheng, attributed the revenue fall to delays in payment, shipment issues, and recent banking crises in the U.S, according to the Beincrypto.

A change in Bitcoin holdings strategy saw Canaan sell off a chunk of its reserves. From holding 757 BTC in Q4 2022, Canaan reduced its Bitcoin holdings to 623 BTC, netting a capital gain of $2.6 million in the process. The move has supported Canaan in reducing operational expenses and gross loans.

Efforts to cut back losses were evident as Canaan managed to decrease its gross loss by 25% in Q1 2023, down to $47.5 million from $64.1 million in the previous quarter. Nevertheless, it still has a long way to recover, given that in Q1 2022, it made a gross profit of $123.5 million.

Investor confidence appears to be wavering, as Canaan’s pre-market stock trades 5.49% down, despite the broader crypto market recovery.