Mining equipment maker Canaan saw steady gains during the first quarter after reporting its unaudited first quarter 2021 financial results on Tuesday. Canaan noted that it expects to at least maintain current profits or increase approximately $150 to $250 million in revenue for Q2.
Canaan Expects $250M in Q2 Revenue – Difficult for the Company to Predict With Current Bitcoin Volatility
On Tuesday, 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 hash rate sold increased by 122% compared to the same period of 2020. Additionally, Canaan saw a “large volume of sales orders for bitcoin miners” during the first quarter. According to Canaan’s unaudited financial records, total net revenue was approximately 402 million yuan, or $61.5 million.
Nangeng Zhang, President and CEO of Canaan, said, “Our financial performance improved significantly in the quarter, driven by an uptick in bitcoin prices, high customer demand for quality miners, and our ability to scale up miner production and distribution. is.” audit Report.
“During this period, we have improved our mining machine production yields and achieved substantial capacity for future production by partnering closely with key foundry partners and other suppliers. We have focused on improving the quality and performance of our miners. has kept its strategic focus on enhancing R&D capabilities,” said Zhang.
Canaan expects ‘yield and distribution to increase significantly’
Canaan is expecting good results in the second quarter due to the large number of mining rig orders placed. The financial report said the company believes Q2 will be at least equal to Q1, but could pull in an estimated $150 to $250 million in revenue. Canaan’s Q1 Financial Results’ Business Outlook Note:
As the company mass-produces its new generation of bitcoin miners, it also expects its yields and deliveries to increase significantly compared to the first quarter of 2021. The company admits that it is difficult to predict the trend in bitcoin price and cannot provide financials. Guidance due to bitcoin price volatility at the end of May this year.
The Q1 news follows two reports in April where Canaan was sold $93.63 million the value of ASIC rigs for Genesis Digital Assets, and 11,760 Next generation A1246 ASIC Avalonminers for a company called Mawson Infrastructure Group. During the first month of January, Canadian bitcoin miner Hive Blockchain bought 6,400 Next generation mining machines from Canaan.
The company’s 2021 first-quarter financial results didn’t boost Canaan shares on Tuesday as CAN shares closed at $10.26 per share at $9.80 per share. Canaan’s A1246 ASIC Avalonminer is the seventh most powerful mining device today according to asicminervalue.com statistics, which show that the A1246 makes a profit of about $21 per day at $0.12 per kilowatt-hour.
What do you think about Canaan’s expected revenue of $150 to $250 million for Q2? Let us know what you think about this topic in the comment section below.
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