Canaan crypto stock reported a revenue drop of 82.1% to $56.8 million in the fourth quarter of 2022 and may fall further.
Canaan, the China-based mining hardware manufacturer, reported revenue of RMB 391.9 million ($56.8 million) in the fourth quarter of 2022. That is a decrease of 59.9% from the third quarter’s revenue of RMB 978.2 million ($140.9 million). And, compared to Q4 2021, it is a drop of a whopping 82% from RMB 2,184.6 million ($314.55 million).
Canaan Increases Bitcoin Holdings Quarter-on-Quarter
Canaan also focused on self-mining in 2022; hence its mining revenue has been growing quarter-on-quarter. In Q4 2022, the mining revenue was RMB 72.2 million ($10.5 million), a growth of 16.3% from the mining revenue of RMB 62.0 million in Q3 2022. ($8.9 million).
Mining revenue is up 368.2% compared to Q4 2021’s RMB 15.4 million ($2.2 million.)
The screenshot below shows that the company has increased its Bitcoin holdings quarter-on-quarter, and Q4 Bitcoin holding was 757.
Gross Loss Due to Crypto Winter?
Canaan incurred a gross loss of RMB 230.9 million ($33.5 million) in Q4 2022. In contrast, the third quarter was profitable, with a gross profit of RMB 219.3 million ($31.6 million).
Chief Financial Officer James Cheng explains, “Our gross loss was partially due to greater depreciation as a result of our growing Bitcoin mining fleet.”
Canaan stock has been in a downtrend, hitting lower lows after rejection from the 50 weekly Simple Moving Average.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.