Chinese cryptocurrency miner Canaan will continue to expand its operations despite the ongoing bear market and associated decline in profits, according to the company’s CEO.
Canaan reported a 90% sequential decline in net income in the third quarter of 2022, the company officially announced on November 14. The company’s net income for the third quarter was 61.1 million renminbi (RMB), or 8.6 million US dollars, up 88%. Kanaan indicated a decrease compared to the same period in 2021.
The company’s revenue fell about 41% from 1.7 million yuan ($230,000) in the second quarter of 2022, while gross profit fell 75% from 940 million yuan ($130 million) in the previous quarter.
Mining has become less profitable due to the crypto winter, and mining rigs in Canaan have also seen a significant drop in demand. According to the latest financials, Canaan sold a total of 3.5 million terahashes per second (th/s) of computing power in the third quarter, or 37% less than the previous quarter.
Despite the downward trend in its most recent financial report, Canaan has no plans to slow the company’s growth. On the contrary, Canaan continues to expand its operations around the world, including research and development projects in addition to mining operations, CEO Nangeng Zhang said.
“As part of our ongoing efforts to enhance our research and development capabilities, we are expanding our headquarters in Singapore with promising local research and development talents to help support our business on a global scale,” Zhang noted.
He also noted that Canaan has expanded its mining business in the US this year, adding:
“We are facing a very difficult industry period as the price of Bitcoin drops to lows not seen in the market in two years. Our priority is to conserve our cash, reduce our expenses and weather this downturn in the market.”
Apart from expanding worldwide, Canaan is working on new mining solutions this year. In October, Canaan officially launched its new series of mining hardware, the AvalonMade 13. The new series is based on advanced application-specific integrated circuit technology, including two models that feature hash rates of 110 Th/s and 130 Th/s.
Canaan did not immediately respond to Cointelegraph’s request for comment.
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“The launch of the next-generation product reaffirms our confidence in the core value of the Bitcoin ecosystem and reflects our continuous research and development efforts in the field of supercomputing technology,” said Zhang.
As previously reported by Cointelegraph, Canaan reported a 117% increase in total profits in the second quarter of 2022 compared to the same period in 2021. The company still expects a deterioration in financials due to the continuing bear market.