Bitcoin miners are running out of luck this year. The pressure on the mining industry is high. Rising energy prices and environmental concerns dominated this year. Some companies were already caught up in the so-called miner capitulation and had to leave the playing field.

How was Canaan doing in Q3 and what are the plans for the immediate future?

Unaudited results are in

It was yesterday when the company published its financial result for the third quarter of this year. It is worth to mention that these numbers are unaudited and given the tension in the market everything should be taken with a grain of salt.

The report shows that the overall situation of Canaan is stressed. A declining Bitcoin price, rising energy costs and scrutiny for environmental concerns are putting heavy pressure on the miners.

Canaan is one of the bigger producers for mining equipment alongside global players like Bitmain. It produces ASIC miners and its feature product is the Avalon miner series. Models deliver between 37 – 130 TH/s and are considered to be efficient. Needless to say, the company reported that it sold 37 % less equipment than it did in Q2 and a whopping decrease of 48 % when comparing the numbers with Q3 2021. Despite this harsh decline Canaan still managed to come out on top and was slightly profitable in Q3 2022.

The mining revenue exploded

One particular number that is interesting in this regard is the revenue generated by mining. Companies who build mining equipment are usually also involved into mining, but to a way smaller extend. New prototypes need to be tested and quality checks also require to run the gear. Since there is no need to waste anything, these machines are usually put to work mining Bitcoin.

It seems that Canaan is using their supply of machines to increase the revenue and profits generated with mining drastically.

The report shows that the company made $8,7 million with mining, which is a 19 % increase compared to the second quarter. Comparing the numbers with last years Q3 the results are even more significant. Over 1000% increase within 1 year. According to the report, the management believes that there are difficult times ahead and that sales will most likely be impacted by the current events for the two or three quarters. However, Canaan invests in research and development in Singapore, hinting that the company is building the needed resources to expand its business globally once the tide is turning again.