Canaan (CAN) 2021 Q1 Earnings Results

Canaan Inc (NASDAQ:CAN), founded in 2013, specializes in manufacturing hardware for mining bitcoin. It is one of the world’s biggest producers of bitcoin mining machines in terms of computing capabilities. The company went public in November 2019 by pricing its shares at $9 for total proceeds of $90 million.

The China-based computer hardware manufacturer recently announced strong financial results for the first quarter. Canaan reported earnings of 1.2 million yuan for the three months ended March 31, versus a loss of 39.9 million yuan in the comparable period of 2020. On an adjusted basis, the company earned 143.2 million yuan, compared to a loss of 73.1 million yuan in the year-ago quarter.

Revenue came in at 402.8 million yuan, significantly higher than 68.3 million yuan in the same period last year. The surge in the total quarterly revenue was mainly driven by solid demand for Canaan’s Bitcoin mining machines.

Speaking on the results, CEO Nangeng Zhang said in a statement, “Our financial performance improved significantly in the quarter, driven by the Bitcoin price rally, higher customer demand for quality mining machines, and our ability to ramp up mining machine production and deliveries. During the period, we improved our mining machine production yields and secured sufficient capacity for future production by forging tighter partnerships with key foundry partners and other suppliers.”

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Looking forward, Canaan expects Bitcoin mining machines delivery numbers to rise substantially in the second quarter. However, the company did not offer any financial outlook for the quarter, citing the highly volatile crypto market.

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