Stocks of cryptocurrency mining rig maker Canaan declined on Monday after it posted shrinking revenues and profits in the third quarter of this year, as the crypto bear market continued to plague the mining industry.
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- Stocks of Nasdaq-listed Canaan dropped 0.74% in pre-market trading as of 6:03 a.m. on Monday in the U.S., after the company released its third-quarter earnings results on early Monday morning.
- In the third quarter of this year, Canaan’s net income shrank to 61.1 million yuan (US$8.6 million), a 90% decline from 608.9 million yuan in the second quarter of 2022 and a 88.1% decline from the same period last year, according to the report.
- The company booked 978.2 million yuan in revenues in the third quarter of this year, down 25.8% year-on-year and down 40.8% from the second quarter of this year.
- Canaan’s total computing power sold shrank to 3.5 million terahashes per second, marking a 48.5% year-on-year decline and a 37.1% quarter-on-quarter fall.
- “The negative market dynamics have significantly hindered bitcoin miners’ revenues and cash flows. As miners are forced to cut their demand for computing power, we had to adjust down our selling price in response,” Nangeng Zhang, chairman and chief executive officer of Canaan, said in the report.
- Despite market turmoil, Canaan’s crypto holdings expanded. It held 535.48 Bitcoins at the end of September, with a carrying value of about US$10.4 million, compared with 346.84 Bitcoins at the end of June, the earnings report showed.
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