Mining-Rig Maker Canaan Q1 Revenue More Than Triples

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Supercomputing solutions company Canaan (CAN), which specializes in bitcoin mining hardware, said revenue surged 237% from the year-earlier quarter to $213.9 million.

• The one analyst cited on Yahoo Finance had forecast $27.37 million. Seeking Alpha, also with one analyst, estimated $213.86 million.
• Net income climbed to $69.7 million. Earnings per share were 2.7 cents, or 41 cents per ADS, the company said. Seeking Alpha cited an EPS estimate of 50 cents.
• The Beijing-based company faced a "logistics suspension" caused by Covid-19 lockdowns in China, which delayed shipments and adversely affected its revenue for the quarter, said CEO Nangeng Zhang.
• "Looking ahead, while we are cognizant of the near-term headwinds, we are confident that our extensive experience, increasingly globalized operations, and execution capabilities put us in a solid position to navigate the current period of uncertainty," Zhang said.
• The company held 166.96 bitcoins on its balance sheet as of March 31.
• Shares of the company rose about 15% to $3.58 at market open, still 60% below its value a year ago, when they were trading around $8.50. Canaan bought $10.3 million of its own stock in the quarter, completing a $20 million share repurchase program announced in September 2021.
• During the quarter, the company approved a plan to buy up to $100 million of its own stock in the 24 months starting March 16, 2022.
• For the full year, Canaan posted a $361.2 million profit, compared with a $31.5 million loss in 2020.
• At the Bitcoin Conference in Miami in April, the mining machine maker released a new model, the Avalon 1266, which rakes in 100 terahash/second (TH/s) of computing power at 35 joules per terahash (J/T) of power efficiency. That's less than MicroBT's new WhatsMiner M50S, which features 126 TH/s of computing power and 26 J/T efficiency, and Bitmain's new S19 XP Hyd. that can hit 255 TH/s at 20.8 J/T.

Read more: Canaan Unveils Bitcoin Mining Machine, Sees Speedier ASIC Market Growth

UPDATE (May 19, 13:54 UTC): Adds Seeking Alpha estimate, details about logistics issues, stock buybacks and machine models.