Canaan reports significant mining loss in Q3 2023 but reflects a resilient year-on-year performance.
Bitcoin mining solution provider Canaan has reported a total revenue of $33.3 million and a net loss of $80.1 million for Q3 2023. The revenue, primarily from the sale of 3.8 million Thash per second of computing power, represents a year-over-year increase of 8.6% despite a decrease from previous quarters.
A significant development in the quarter was the launch and pre-sales of the new A14 product series, characterized by high computing power and energy efficiency. This release has been well received, indicating growing customer interest. However, the company faced increased pricing competition.
Canaan also obtained a Type II license for Bitcoin mining in Kazakhstan, following new digital mining regulations. The company had temporarily shut down some of its mining power in Kazakhstan for legal compliance, but is now set to resume operations, aligning with its strategy to diversify its global mining portfolio.
Bitcoin mining activities have intensified, with the latest Bitcoin halving on the horizon. Recently, BTC mining difficulty has reached a record high and several leading mining firms have also secured key investments. The halving season traditionally intensifies mining operations due to reduced Bitcoin rewards, and we’ve seen similar trends in recent months.