Cryptocurrency News

Nasdaq-listed bitcoin miners urge China to open doors to green mining

CEO of Nasdaq-listed Canaan Inc., a China-based firm specializing in bitcoin (B T c) mining equipment, argued China’s bitcoin mining ban should make allowances for green-energy users during a conference call on Tuesday.

Zhang Nangeng said that the indiscriminate ban on bitcoin mining failed to take into account the potential economic benefits that could arise from the adoption of green-energy mining. Zhang said mining could offer a solution to oversupply of electricity in some areas of the country, where the resulting low energy prices already attract miners.

“For-profit miners prefer areas with low electricity prices indicating oversupply, and potential energy waste. Bitcoin miners also help create jobs in poorer areas and contribute to the financial coffers,” Zhang said.

of canaan share price There was a 24% increase on Tuesday, adding to the 42% increase for the week. The jump in Canaan’s share price came amid the firm’s release financial result For the first quarter of the year, which shows impressive growth from this time in 2020.

The company’s revenue increased 490% year-on-year, primarily from sales of its ASIC mining equipment. The company also reported net income of $22.4 million, after reporting a net loss of $5.9 million a year earlier.

“Driven by the bitcoin price rally, high customer demand for quality miners, and our ability to scale up miner production and distribution, our financial performance improved significantly in the quarter,” Nancheng wrote in the quarterly report.

The jump in the firm’s stock price represents a rapid turnaround after sinking 41% over the past month amid a drop in bitcoin prices. The firm’s business outlook predicted an increase in sales, but was restrained from providing further financial guidance due to volatility in the price of bitcoin, which has an impact on mining demand.

“The company recognizes that bitcoin price trends are difficult to predict and cannot provide financial guidance due to the volatility in the bitcoin price at the end of May this year,” the report said.