Canaan’s Net Income Reaches $38 Million in Q2 2021

The company reported a substantial increase in net revenues and gross profit.

Canaan, a leading crypto mining hardware manufacturer and computing solutions provider, recently released its unaudited financial results for the second quarter ended 30 June 2021. The company’s net revenues reached $167.5 million in the latest quarter, which is the highest in the company’s operating history.

In terms of net income, Canaan reported a massive turnaround. The company’s net income touched $37.9 million in Q2 of 2021, compared to a net loss of RMB 16.8 million during the same period in 2020. Canaan posted a gross profit of $66.2 million in Q2 of 2021, which is up by nearly 887% compared to the same period last year.

Canaan‘s total computing power sold in the latest quarter was 5.9 million Thash/s, which is up 126.9% from 2.6 million Thash/s in the same period of 2020. Moreover, it is up 200.0% from 2.0 million Thash/s in the first quarter of 2021, which is another record high.

“We delivered a remarkable performance in the second quarter of 2021. Despite unexpected regulatory policy dynamics and Bitcoin price volatility, we achieved record-high topline results as we delivered a robust 5.9 million Thash/s of computing power to our clients. During the second quarter and recently, we also secured substantial preorders, thanks to the effective execution of our strategies, including business development in the overseas markets, institutional client relationship building, and strengthening our supply chain,” Nangeng Zhang, the Chairman and Chief Executive Officer of Canaan, commented.

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“Regarding our self-operated Bitcoin mining program, we plan to continue to deploy computing power to grasp the tremendous opportunities of Bitcoin mining,” Zhang added.

Record Quarter for Canaan

During the latest quarter, the company saw record growth in terms of operational and financial metrics. Basic net earnings per American depositary share (ADS) in the second quarter of 2021 was RMB 1.46 (US$0.23). In comparison, the basic net loss per ADS in the same period of 2020 was RMB 0.11.

In the recent quarter, Canaan increased its investment in research and development efforts. Research and development expenses in the second quarter of 2021 were RMB 64.0 million (US$9.9 million).

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