On Tuesday, after Bitcoin mining hardware manufacturer Canaan announced that its third-quarter revenue doubled compared to the same period last year, the company's stock price surged. The revenue growth of several mining companies has driven strong demand for equipment.
Canaan stated on Tuesday that its total revenue for the third quarter increased by 104% year-on-year to $150.5 million, driven by "a large number of new orders," with mining equipment revenue accounting for the largest share at $118.6 million.
The company's Chief Financial Officer, James Jin Cheng, mentioned during the earnings call that a significant portion of sales came from U.S. customers, who "have started to actively place large and repeat orders."
"Sales to North American customers contributed 31% of our total revenue in the third quarter. We are pleased to see a strong recovery in demand from the North American market," he added.
Other mining companies also reported strong earnings. HIVE Digital reported a 285% increase in revenue on Monday, while BitFuFu's third-quarter revenue doubled, benefiting from miners seeking to capitalize on rising Bitcoin prices and the demand for cloud mining and equipment.
On Tuesday, Canaan (CAN) shares closed up nearly 21% at $1.03, with after-hours gains further expanding nearly 2% to $1.05.
Canaan's stock price has fallen nearly 50% this year, as many Bitcoin mining companies have shifted to providing computing power for artificial intelligence, amid rising mining costs and difficulty, while Bitcoin prices have declined.
The company reported third-quarter mining revenue of $30 million, a year-on-year increase of 241%, with a net loss of $27 million, compared to a loss of $75 million in the same period last year.
Canaan mined 267 Bitcoins (BTC), generating an average revenue of $114,485 per coin, and as of the end of October, its holdings increased to 1,610 BTC.
Canaan's CEO, Zhang Nengeng, told investors during the earnings call that some mining companies facing balance sheet pressures and stock performance issues are turning to artificial intelligence, reducing their mining operations in the medium term.
However, he still believes that Bitcoin mining is a viable option during the transition period, as the deployment of artificial intelligence infrastructure takes time.
"Our customers, including ourselves, are thinking about how to build mining facilities that support artificial intelligence for the future," he said. "At this stage, deploying more Bitcoin mining machines is still the best way to allocate energy and generate revenue, rather than waiting for a year, two years, or three years."
Related: Stablecoin giant Tether has invested in Ledn, targeting the global cryptocurrency lending market.
Original article: “Canaan's third-quarter revenue doubles due to demand for Bitcoin mining machines, stock price surges”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
