Canaan expects its revenue to decline moderately by the end of 2022

While the bitcoin price has fallen 70% since the beginning of the year, Canaan’s turnover is down only 14% in RMB.
The mining company Canaan said its revenue is down only 15% this year, despite the fact that the bitcoin price has fallen 70% since the beginning of the year. Available data shows that the organization generated revenue of 4 billion yuan ($573 million) in the first nine months of this year. Canaan expects turnover of 310 million yuan ($46 million) in the fourth quarter, which would bring total revenue for the year to 4.31 billion yuan (about $619 million).
The expected output will be about ¥600 million less than in 2021, based on the reports previous year. At the same time, given the weakening of the yuan against the U.S. dollar, the decline in revenue, recalculated in U.S. currency, will be about 21%.
It is worth noting that Canaan’s revenue in 2022 will clearly exceed the results of 2020 (448 million yuan) and 2019 (1.4 billion yuan). The company emphasizes that the steady financial result is seen in the organization due to the fact that it has become involved not only in the production of bitcoin miners, but also launched itself the cryptocurrency’s No. 1 mining operations, starting in mid-2021.
Explaining the logic behind its decision in 2021, Canaan stressed that using its own production machines to mine bitcoins allows it to adapt to such situations in the market, when at times the demand for mining equipment decreases.
Given the fact that there are currently observed . record discounts, it can be assumed that the organization will increase its own bitcoin mining, holding back some of the machines that can later be put on the market when bitcoin miner prices go up again.

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