Shares in Canaan surged on Tuesday after the Bitcoin mining {hardware} maker reported its third-quarter revenues doubled from final yr, pushed by a excessive demand for gear as a number of miners noticed revenues enhance.
Canaan mentioned on Tuesday that its complete Q3 revenues elevated 104% from final yr to $150.5 million resulting from a “substantial quantity of recent orders,” with its mining gear revenues making up the lion’s share at $118.6 million.
James Jin Cheng, the miner’s chief monetary officer, mentioned within the firm’s earnings name that a lot of gross sales got here from purchasers within the US, who “began actively putting sizable and repeating orders.”
“Gross sales of North American clients contributed 31% of our complete income in quarter three. We’re completely happy to witness the sturdy demand restoration of the North American market,” he added.
Different miners have additionally been reporting sturdy earnings. HIVE Digital reported a 285% earnings enhance on Monday, whereas BitFuFu doubled its third-quarter income off the again of demand for cloud mining and gear as miners sought to capitalize on the rising value of Bitcoin.
Canaan shares leap on earnings
Shares in Canaan (CAN) closed buying and selling on Tuesday up almost 21% to $1.03 on the corporate’s earnings, with positive factors extending by almost 2% after the bell to $1.05.
Canaan’s inventory is down almost 50% this yr as many Bitcoin miners have pivoted to powering synthetic intelligence, as the price and problem of mining have elevated whereas Bitcoin’s value has fallen.
The corporate reported it made $30 million in mining income over Q3, up 241% yr over yr, and a internet lack of $27 million in comparison with $75 million a yr in the past.
Associated: TeraWulf Q3 income up 87% as Bitcoin almost doubles over the yr
Canaan mined 267 Bitcoin (BTC) at a mean income of $114,485 per coin and elevated its holdings to 1,610 Bitcoin by the tip of October.
CEO pitches Bitcoin mining as one of the simplest ways to earn
Canaan CEO Nangeng Zhang advised buyers on an earnings name that some miners going through stability sheet stress and share value efficiency points are shifting towards AI, decreasing mining operations over the medium time period.
Nonetheless, he nonetheless thinks Bitcoin mining is a viable choice whereas the transition is underway, as a result of the deployment of AI infrastructure takes time.
“Our clients, together with ourselves, are interested by methods to construct AI-ready mining services for the long run,” he mentioned. “At this stage, deploying extra Bitcoin miners remains to be one of the simplest ways to allocate power at the moment and generate revenues from this date, not ready for an additional one or two or three years.”
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