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Zach Anderson Nov 20, 2024 13:09
Canaan Inc. (NASDAQ: CAN) reports a significant 120.9% year-over-year revenue increase for Q3 2024. The company sold 7.3 million Thash/s computing power, despite a challenging market.
Canaan Inc. (NASDAQ: CAN), a leader in high-performance computing solutions, has announced its unaudited financial results for the third quarter of 2024. The company reported a substantial increase in total revenue, reaching $73.6 million, marking a 120.9% year-over-year growth, according to PR Newswire.
Financial Highlights
The company exceeded its previous revenue guidance of $73 million, driven by a robust performance in computing power sales, which increased by 93.8% year-over-year, achieving 7.3 million Thash/s. Canaan's mining revenue was reported at $9 million, with 147 Bitcoins mined, each generating an average revenue of $61,034.
Despite challenging market conditions, Canaan managed to narrow its loss from operations to $56.8 million, a 49.6% improvement from the previous year. The company's strategic execution, particularly in large-scale deliveries of its A14 mining machines, played a crucial role in these results.
Operational Developments
Chairman and CEO Nangeng Zhang highlighted the company's strategic advancements despite the industry's challenges. The launch of the A15 series, known for its superior performance, has begun on a small scale, with plans to ramp up deliveries in the fourth quarter. Canaan is also expanding its presence in North America, securing orders from companies like CleanSpark and HIVE for its Avalon series.
Jin "James" Cheng, CFO of Canaan, emphasized the company's strengthened production and delivery capabilities, which led to the highest sales of mining machines in nearly two years. The company also increased its Bitcoin holdings to a record high of 1,231 Bitcoins, reinforcing confidence in cryptocurrency assets' long-term value.
Financial Metrics
Product revenue for Q3 2024 was $64.6 million, up from $61.8 million in Q2 2024 and $29.9 million in Q3 2023. The increase was attributed to higher computing power sales and average selling prices. However, Canaan reported a gross loss of $21.5 million and a net loss of $75.6 million for the quarter.
Strategic Investments
Canaan's strategic focus includes expanding its mining operations in Texas and Pennsylvania. The company has entered a joint mining agreement with Luna Squares Texas LLC and amended its hosting agreement with Stronghold Digital Mining. These initiatives aim to boost Canaan's computing power and operational efficiency.
The company also secured significant orders for its Avalon miners, including 3,800 units for CleanSpark and 11,500 units for HIVE, indicating robust demand for its high-performance mining solutions.
Future Outlook
Looking ahead, Canaan projects total revenues of approximately $80 million for the fourth quarter of 2024. The company remains focused on leveraging its technological advancements and strategic investments to navigate market challenges and capitalize on emerging opportunities.
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