Canaan’s profit rises by 117% over the year despite China’s ban on mining

What’s new? Canaan, a Chinese manufacturer of cryptocurrency mining equipment, has released a report that shows an increase in gross profit in Q2 2022, despite the country’s ban on mining. Compared to the same period in 2021, revenue increased by 117%. The company’s representatives noted that profits amounted to 930 million yuan (about $139 million).

Canaan’s report

What else does the report say? Сanaan called the Q2 period a difficult one because the bitcoin rate repeatedly dipped below $20 000 in June. Net income for this period was $91 million, or 149% more than the same period in 2021. CEO Nangeng Zhang added:

“Overall, we are fully aware of the downward pressure from the Bitcoin price since the last fourth quarter and expect it to bring prolonged headwinds to our performance in the coming quarters. Nevertheless, we believe in the unique value of Bitcoin and its long-term prospects.”

As of August 19, 07:00 UTC, bitcoin is trading at $22 046, having lost 5,45% per day, according to Binance.

Also as of today, there are 90 bitcoin nodes available in China to secure the Bitcoin network, according to crypto analytics platform Bitrawr.

Information on the Bitrawr website

The ban on cryptocurrency mining in the PRC had been phased in since May 2021, when the government banned financial institutions from engaging in any transactions with digital assets. In July, mining was completely banned in the country, and in September the authorities outlawed cryptocurrencies.

What is known about Canaan? The company was founded in 2013 by Nangeng Zhang, headquartered in China. It specializes in blockchain servers and ASIC microprocessor solutions for bitcoin mining. Canaan went public on the US Nasdaq exchange in 2019 under the ticker symbol CAN. As of August 19, 07:00 UTC, the stock is trading at $3,94, having gained 0,77% per day, according to Investing.com.

Canaan said in late July that it intends to open its own mining farm in the United States. Joint ventures for cryptocurrency mining will also be launched in the States. The recent increase in taxes for miners in Kazakhstan forced Canaan to look for new jurisdictions to diversify its business.