The mining rig manufacturer Canaan saw steady profits during the Q1 after reporting its unaudited first quarter 2021 financial results on Tuesday. Canaan noted that it expects to at least sustain current profits or rise above to roughly $150 to $250 million in revenue for Q2.
Canaan Expects $250M in Revenue for Q2 – Company Recognizes It’s Hard to Predict With Current Bitcoin Volatility
On Tuesday, the China-based ASIC mining rig maker Canaan (Nasdaq: CAN) published the firm’s unaudited first quarter 2021 financial results and the company did well this year. The amount of hashrate sold jumped by 122% compared to the same period of 2020. Additionally, Canaan saw a “larger volume of sales orders of bitcoin mining machines” during the first quarter. Total net revenue was around 402 million yuan or $61.5 million according to Canaan’s unaudited financial records.
“Our financial performance improved significantly in the quarter, driven by the Bitcoin price rally, higher customer demand for quality mining machines, and our ability to ramp up mining machine production and deliveries,” Nangeng Zhang, chairman, and CEO of Canaan revealed in the audit report.
“During the period, we improved our mining machine production yields and secured sufficient capacity for future production by forging tighter partnerships with key foundry partners and other suppliers. We also maintained our strategic focus on enhancing our R&D capabilities to augment the quality and performance of our mining machines,” Zhang added.
Canaan Expects ‘Yields and Deliveries to Increase Substantially’
Canaan is expecting decent results in Q2 thanks to a large number of mining rig orders placed. The financial report noted that the company believes Q2 will at the least be on par with Q1 but could pull in a projected $150 to $250 million in revenue. Canaan’s Q1 financial results’ business outlook notes:
As the company mass produces its new generation of bitcoin mining machines, it also expects its yields and deliveries to increase substantially as compared with the first quarter of 2021. The company recognizes that the trends in bitcoin prices are currently hard to predict and cannot provide financial guidance due to bitcoin’s price volatility in late May of this year.
The Q1 news follows two reports in April where Canaan sold $93.63 million worth of ASIC rigs to Genesis Digital Assets, and 11,760 next-generation A1246 ASIC Avalonminers to a company called Mawson Infrastructure Group. During the first month of January, Canadian bitcoin miner Hive Blockchain has bought 6,400 next-generation mining machines from Canaan.
The company’s first-quarter 2021 financial results did not give Canaan shares a boost on Tuesday as CAN shares closed at $10.26 per share to $9.80 per share. Canaan’s A1246 ASIC Avalonminer is the seventh most powerful mining rig today according to asicminervalue.com stats, which shows an A1246 gets around $21 per day in profit at $0.12 per kilowatt-hour.
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