Shares in Canaan advanced on Tuesday after the Bitcoin hardware maker reported that third-quarter profits doubled from last year, driven by a high demand for equipment as many miners saw a rise in profits.
Canaan said On Tuesday that Q3 total revenue rose 104% from a year ago to $150.5 million due to a “large volume of new orders,” including Mining Equipment Revenues accounted for the lion’s share at $118.6 million.
James Jin Cheng, the miner’s chief financial officer, said Of the company’s earnings a large number of sales came from clients in the US, who “began to actively place massive and repeated orders.”
“Sales to North American customers contributed 31% of our total revenue in quarter three. We are happy to witness the strong recovery of demand in the North American market,” he added.
Other miners are also reporting strong profits. Hive digital reported a 285% increase in revenue on Monday, while Bitfufu Third-quarter earnings doubled Far behind is demand for cloud mining and equipment as miners seek to capitalize on Bitcoin’s soaring price.
Canaan shares jumped on earnings
Shares in Canaan (CAN) closed trading Tuesday up nearly 21% to $1.03 on the company’s earnings, with gains reaching nearly 2% after the bell at $1.05.
Canaan stock is down nearly 50% this year as many bitcoin miners pivot to the power of artificial intelligence, as the Cost and difficulty of mining rose as the price of Bitcoin fell.
The company reported that it made $30 million in mining revenue in Q3, up 241% year over year, and a net loss of $27 million compared to $75 million a year ago.
Related: Terawulf Q3 Revenue Up 87% as Bitcoin Almost Doubles Over the Year
Canaan Mined 267 Bitcoin (BTC) at an average profit of $114,485 per coin and increased its holdings to 1,610 Bitcoin by the end of October.
CEO pitches bitcoin mining as the best way to earn
Canaan CEO Nangeng Zhang told investors in an earnings call that some miners facing balance sheet pressure and share price performance issues are Moving towards AIDownsizing of mining operations in the medium term.
However, he still thinks Bitcoin mining is a viable option while the transition is underway, as the deployment of AI infrastructure takes time.
“Our customers, including ourselves, are thinking about how to build AI mining facilities for the future,” he said. “At this stage, removing more Bitcoin miners is still the best way to allocate energy now and generate profits from this date, not waiting for one or two or three years.”
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