Shares in Canaan surged on Tuesday after the Bitcoin mining {hardware} maker reported its third-quarter revenues doubled from final 12 months, pushed by a excessive demand for tools as a number of miners noticed revenues enhance.
Canaan said on Tuesday that its whole Q3 revenues elevated 104% from final 12 months to $150.5 million resulting from a “substantial quantity of recent orders,” with its mining equipment revenues making up the lion’s share at $118.6 million.
James Jin Cheng, the miner’s chief monetary officer, said within the firm’s earnings name that numerous gross sales got here from purchasers within the US, who “began actively inserting sizable and repeating orders.”
“Gross sales of North American clients contributed 31% of our whole income in quarter three. We’re pleased to witness the robust demand restoration of the North American market,” he added.
Different miners have additionally been reporting robust earnings. HIVE Digital reported a 285% earnings increase on Monday, whereas BitFuFu doubled its third-quarter revenue off the again of demand for cloud mining and tools as miners sought to capitalize on the rising worth of Bitcoin.
Canaan shares leap on earnings
Shares in Canaan (CAN) closed buying and selling on Tuesday up practically 21% to $1.03 on the corporate’s earnings, with beneficial properties extending by practically 2% after the bell to $1.05.
Canaan’s inventory is down practically 50% this 12 months as many Bitcoin miners have pivoted to powering synthetic intelligence, because the cost and difficulty of mining have elevated whereas Bitcoin’s worth has fallen.
The corporate reported it made $30 million in mining income over Q3, up 241% 12 months over 12 months, and a web lack of $27 million in comparison with $75 million a 12 months in the past.
Associated: TeraWulf Q3 revenue up 87% as Bitcoin nearly doubles over the year
Canaan mined 267 Bitcoin (BTC) at a median income of $114,485 per coin and elevated its holdings to 1,610 Bitcoin by the top of October.
CEO pitches Bitcoin mining as one of the simplest ways to earn
Canaan CEO Nangeng Zhang instructed traders on an earnings name that some miners dealing with steadiness sheet stress and share worth efficiency points are shifting toward AI, lowering mining operations over the medium time period.
Nevertheless, he nonetheless thinks Bitcoin mining is a viable possibility whereas the transition is underway, as a result of the deployment of AI infrastructure takes time.
“Our clients, together with ourselves, are interested by the right way to construct AI-ready mining services for the long run,” he stated. “At this stage, deploying extra Bitcoin miners remains to be one of the simplest ways to allocate power at this time and generate revenues from this date, not ready for an additional one or two or three years.”
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