Canaan, a leading Chinese crypto miner, has posted significant profits despite the Chinese cryptocurrency ban being active. In its Q2 financial report published on August 18, the firm revealed that it made 117% more in gross profits compared to Q2 last year. This year’s second quarter profits hit 139 million USD, with its net income reaching highs of 91 million USD, representing a 149% rise from Q2 2021. For Canaan, the quarter’s translation between the renminbi and the USD resulted in profits compared to last year when it was a loss.
Although it was a profitable quarter, the company faced challenges due to the crypto winter that negatively affected the price of Bitcoin (BTC). Nangeng Zhang, Canaan’s CEO, added that lockdowns due to the coronavirus pandemic significantly disrupted the firm’s normal operations. Zhang disclosed that the Chinese cryptocurrency ban steered the company into establishing a global presence and making Singapore its international headquarters.
Apart from eyeing a piece of the global crypto mining cake, the Canaan chief executive said that his firm is boosting its crypto mining capacity, allowing it to discover more BTC with less strain on the power grid. Towards the end of the first half of this year, Canaan held BTC worth slightly above eight million USD.
Zhang said that his company was aware of Bitcoin’s price “downward pressure” that started manifesting in last year’s last quarter. While he expects the pressure to continue, he declared the company’s belief in BTC’s “unique value.”
James Jin Cheng, Canaan’s CFO, agreed with Zhang noting that the bears are likely to continue overpowering the bulls due to low prices, high energy costs, and geopolitical uncertainties, among other factors.
According to Cheng, low Bitcoin prices during Q2 forced the firm to reduce its “product price for spot sales.” Despite the Chinese cryptocurrency ban, the country is still leading in BTC mining activity as of January this year.