Mining equipment manufacturer Canaan's net profit fell by 90% - despite this, the company will continue to expand and hire new employees.
Nangeng Zhang, CEO of Chinese ASIC miner manufacturer Canaan, has announced that the company will continue to expand its operations despite the ongoing downturn in the cryptocurrency market. At the same time, net profit for the third quarter of 2022 decreased by 90%, amounting to $8.6 million, which is almost two times less than in the same period last year.
The company's revenue has been falling since the beginning of the year, down 41% in the second quarter. And Canaan's gross profit fell by 75% from $130M. According to the latest financial reports, Canaan sold a total of 3.5M TH/s of computing power in the third quarter of this year, down 37% from the previous quarter.
Canaan continues to scale its operations around the world, including R&D projects and digital currency mining. The company will hire more people to work on projects at its headquarters in Singapore, Zhang said. Moreover, Canaan will expand its mining business in the US:
“We are facing a very difficult period for the industry as the price of bitcoin has fallen to lows the industry has not seen in almost two years. Now we are trying to preserve our capital by minimizing costs in order to weather this market downturn.”
In August, Canaan Senior Vice President Edward Lu promised
maintain the company's status as the world's largest manufacturer of mining equipment, despite the decline in the cryptocurrency market.