Canaan Crypto Stock to Hit New Lows After Reporting 82% Drop in Revenue

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.

Source: Financial report

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.

Source: TradingView

On Monday, other crypto stocks also closed in the red. MicroStrategy dropped by 4.7% and Coinbase by 2.7%.

Got something to say about Canaan crypto stock or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or Twitter.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here


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.

Bookmark (0)
ClosePlease loginn

Related Posts

Bitcoin: The Best Performing Asset Class in Q1 2023

Bitcoin set for its best trading quarter in nearly 2-years.
The top cryptocurrency vastly outpaces stocks performance.
BTC is well placed for more gains in Q2 2023.

Bookmark (0)
ClosePlease loginn

USDC Supply Shrinks by $10 Billion in March, But Hits 6-Month High on Smart Contracts

USDC supply declined by $10 billion in March following its exposure to the US banking crisis.
However, the stablecoin use on smart contracts reached a six-month high of 42.08%.
Tether USDT is now the dominant stablecoin, accounting for over 60% of the market.

Bookmark (0)
ClosePlease loginn

Bittrex Quits US, Cites Unfavorable Regulatory Environment

Crypto exchange Bittrex said it was leaving the United States because of the regulatory environment.
The crypto company had had previous skirmishes with financial regulator in the country.
Crypto stakeholders have warned that the US regulatory landscape would force many firms out of the country.

Bookmark (0)
ClosePlease loginn

Solana overcomes FTX fiasco — SOL price gains 100% in Q1

The cryptocurrency market may have overreacted to Solana’s FTX links and its tainted boss, Sam Bankman-Fried.

Bookmark (0)
ClosePlease loginn

Elon Musk requests dismissal of $258B Dogecoin lawsuit: Report

The plaintiff’s brought up Musk’s Saturday Night Live appearance in 2021, where he portrayed “a fictitious financial expert” and called Dogecoin “a hustle,” resulting in a steep price decline minutes later.

Bookmark (0)
ClosePlease loginn

Here’s how the crypto industry is using artificial intelligence

The rise of artificial intelligence, though in its early stages, has found use cases in crypto through countless projects.

Bookmark (0)
ClosePlease loginn

Leave a Reply

Your email address will not be published. Required fields are marked *