Canaan, a mining equipment manufacturer, achieved stable profits in the first quarter after announcing its unaudited financial results for the first quarter of 2021 on Tuesday. Jianan Zhizhi pointed out that it expects to at least maintain current profits or increase its revenue in the second quarter to approximately US$15-250 million.
Jianan Zhizhi expects second-quarter revenue to be 250 million U.S. dollars-the company admits that the current volatility of Bitcoin is difficult to predict
On Tuesday, China-based ASIC mining machine manufacturer Canaan (NASDAQ: CAN) released the company’s unaudited financial results for the first quarter of 2021. The company performed well this year. Compared with the same period in 2020, the amount of computing power sold has increased by 122%. In addition, Canaan saw “an increase in the number of sales orders for bitcoin mining machines” in the first quarter. According to Canaan’s unaudited financial records, the total net income is approximately RMB 402 million or USD 61.5 million.
“Driven by the increase in the price of Bitcoin, the increase in customer demand for high-quality mining machines, and our increased production and delivery capabilities for mining machines, our financial performance this quarter has improved significantly,” said Zhang Nan, Chairman and CEO of Jianan Zhizhi More revealed in the report. Audit Report.
“During this period, we have increased our mining machine output and ensured sufficient future production capacity by establishing closer partnerships with major foundry partners and other suppliers. We have also maintained our strategic focus and strengthened our To improve the quality and performance of our mining machines,” Zhang added.
Canaan expects “production and delivery will increase substantially”
Due to a large number of orders for mining equipment, Canaan expects to achieve good results in the second quarter. The financial report pointed out that the company believes that the second quarter will be at least the same as the first quarter, but it is expected that revenue may reach US$15-250 million. The business outlook for Canaan’s financial performance for the first quarter states:
As the company mass-produces a new generation of Bitcoin mining machines, its output and delivery are expected to increase significantly compared to the first quarter of 2021. The company recognizes that the trend of bitcoin prices is currently unpredictable and cannot provide financial data. Guidance due to Bitcoin price fluctuations in late May of this year.
The news of the first quarter was released after two reports in April, in which Canaan sold $93.63 million worth of ASIC rigs to Genesis Digital Assets and sold 11,760 next-generation A1246s to a company called Mawson Infrastructure Group. ASIC Avalonminers. In the first month of January, Canadian Bitcoin miner Hive Blockchain purchased 6,400 next-generation mining machines from Canaan.
As CAN’s stock price closed at US$10.26 per share to US$9.80 per share, the company’s financial results for the first quarter of 2021 did not boost Canaan’s share price on Tuesday. According to statistics from asicminervalue.com, Canaan’s A1246 ASIC Avalonminer is the seventh most powerful mining equipment today. The data shows that the daily profit of the A1246 is approximately US$21 and US$0.12 per kilowatt-hour.
What do you think of Canaan’s estimated revenue of US$15-250 million in the second quarter? Please tell us your thoughts on this topic in the comments section below.
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