Canaan secures new financing as revenue falls 55% in Q3

Bitcoin miner Canaan is searching for new capital amid a stoop in its income and backside line.

In keeping with its Q3 2023 earnings report launched on Nov. 28, the corporate seeks to promote $148 million in fairness by way of an at-the-market providing. The day earlier than, Canaan introduced that it had reached an settlement with an undisclosed institutional investor to concern as much as 125,000 most popular inventory at $1,000 apiece for whole proceeds of $125 million.

In comparison with the third quarter of 2022, the corporate’s income fell 55% to $33.three million on account of a lower within the variety of Bitcoin (BTC) mined and a fall within the variety of ASIC mining rigs offered. The agency additionally swung to a internet lack of $110.7 million in comparison with a internet revenue of $6.three million in the identical interval a 12 months in the past. 

“Total, we confronted elevated pricing competitors and a noticeable softening in buying energy on the demand entrance, which has posed extreme challenges to our gross sales,” mentioned Nangeng Zhang, chairman and chief government officer of Canaan. The agency expects its This fall income to be roughly unchanged from Q3 on account of “difficult market situations throughout the business.”

Attributable to hovering electrical energy prices and decrease BTC costs, a number of Bitcoin miners filed for chapter in 2022, disrupting the gross sales of Bitcoin ASIC mining rigs. Nonetheless, market situations have improved this 12 months on account of easing inflation and a restoration in Bitcoin costs. On Nov. 13, Bitcoin miners earned $44 million in block rewards and transaction charges, the very best ever in historical past. 

Associated: Bitmain’s revenge, Hong Kong’s crypto rollercoaster