Canaan Finishes Q3 with $13 Million in Gains as Mining Demand Rebounds

The sale of its machines surged significantly year-on-year.

As the demand in the crypto mining industry is soaring following the rebound of Bitcoin prices, Canaan Creative registered 94 million yuan (around $13 million) in net profits for the third quarter of this year.

The figures were revealed on Wednesday in an updated filing by the crypto mining hardware maker in the US for its initial public offering (IPO).

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The growing demand in the market can be easily seen with the 670 million yuan ($95 million) quarterly revenue of the company for the period – a 40 percent increase in numbers over the same period in the previous year.

After failed IPO attempts in both mainland China and Hong Kong, Canaan approached the US market and officially filed to list its shares publicly late last month. The Chinese giant is mulling for a Nasdaq listing and willing to raise $400 million in the offering.

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Following Bitmain, Canaan is the second-largest Bitcoin miner manufacturer. The company sells Avalon-branded high-performance ASIC-based mining machines for Bitcoin mining, which are designed and manufactured by the firm itself.

Impressive figures to attract investors

Per the originally filed documents, the company generated $394 million in revenue in the fiscal year of 2018 and booked a profit of $8.3 million.

The latest filings also show that the total sale of Canaan’s older Avalon 8 for the current year touched 265,756 units, while the sale of the two latest models – Avalon 9 and Avalon 10 – remained in the lower side with 88,034 and 56,556 units respectively.

The company also concluded that its sales for the year to date contributed to eight percent of the total Bitcoin mining hash rate with a total computing power of 7.59 exhashes per second.

Meanwhile, Bitmain also reportedly approached the US Securities and Exchange Commission to file for an IPO, months after the lapse of its application with the Hong Kong Stock Exchange.

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