Canaan posted record quarterly revenue of $167.5 million
Mining equipment maker Canaan posted $167.5 million in revenue for the second quarter of 2021, the highest quarterly sales volume in the company's history.
According to the financial results report, total computing power sold for the period reached 5.9 million TH/s. The figure was 200% higher than the results for the first quarter. Compared to 2020 on a capacity basis, sales were up 126.9%.
The solid year-over-year and period-over-period growth is mainly due to an increase in the number of bitcoin mining devices shipped, driven by strong market demand, the press release said.
The company posted net income of $37.9 million, its best result since Canaan went public in November 2019.
The firm reported first-quarter earnings of about $186,500.
Canaan CEO Nangeng Zhang said the strong financial performance provided "significant advance orders" for equipment. Thanks largely to advance payments, the company's cash on hand as of June 30 reached $189 million, he added.
In April, Canaan agreed to supply $93.63 million worth of miners to Genesis Digital Assets, with which it has entered into a strategic partnership. That same month, Mawson Infrastructure Group ordered 11,760 bitcoin mining devices from the manufacturer.
In June, Canaan announced an expanded partnership with Genesis Digital, in which it will deliver an additional 10,000 ASIC miners.
Commenting on the quarter's results, Canaan's CEO said the company will continue to grow its own mining business. He also reported "demand from multiple customers" for the firm's Kendryte K510 edge computing AI chip.
Canaan stock was up nearly 5% from its closing price on the premarket.
Recall that after Canaan went public, Iterative Capital Management director Leo Zhang predicted the company's exit from the mining industry to the field of AI.