Canaan Expects Slight Revenue Drop in 2022 Despite Crypto Mining Crisis

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Cryptocurrency mining giant Canaan continues to generate significant revenue from crypto operations despite the current cryptocurrency mining crisis.

Canaan’s total revenue for the first nine months of 2022 was around 4 billion Chinese yuan (RMB), or around $573 million, a Canaan spokesperson told Cointelegraph. While the company expects to generate another 310 million RMB ($46 million) in the fourth quarter, total annual revenue is expected to be 4.3 billion RMB ($619 million).

The amount is down about 14% from Canaans’ RMB-denominated revenue of RMB 4.9 billion last year. In USD, total revenue decreased approximately 21% from $783 million in 2021.

Annual revenue for Canaans 2022 would still be significantly larger than previous years, increasing nearly 90% from RMB 448 million ($64 million) in 2020. In 2019, annual revenue for Canaans was 1.4 billion RMB ($201 million).

Canaans revenue breakdown by services. Source: SEC report

Canaan’s financial success in recent years comes after the company launched its own mining operations, expanding its services beyond manufacturing crypto-mining devices.

We started our mining operations in mid-2021. One of our considerations is that when there is a shortage of demand for mining machinery, we can deploy some of our inventory in our mining operations to earn additional income, Canaan said. Under certain circumstances, Canaan is able to resell its mining equipment, the company representative said:

We balance the use of our machines with mining, and our mining serves as a powerful support and complement to mining machine sales.

The spokesperson declined to divulge further details about the use and resale of used mining equipment.

Related: Bitcoin ASIC Miner Prices Hover at Levels Not Seen in Years

The news comes amid the crypto mining industry which is suffering from a major slump, with 100% of public mining companies set to sell off nearly all of the crypto they mined in 2022.

On December 28, crypto-mining firm Argo Blockchain sold flagship mining facility Helios to Galaxy Digital to reduce debt and improve liquidity. Previously, crypto-mining firm Core Scientific also filed for Chapter 11 bankruptcy on Dec. 21 due to rising energy costs.

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