Canaan Anticipate Second Quarter Income of $ 250 Million – Mine Rigs Yields and Shipments to ‘Improve Dramatically’
Mining rig maker Canaan posted steady first-quarter income after releasing its unaudited first quarter 2021 monetary outcomes on Tuesday. Canaan famous that it expects to at the least preserve present or present income. exceed at round $ 150 to $ 250 million in income for the second quarter.
Canaan Expects $ 250 Million in Q2 Income – Firm Acknowledges Tough to Predict With Bitcoin’s Present Volatility
Chinese language mining rig maker ASIC Canaan (Nasdaq: CAN) on Tuesday launched the corporate’s unaudited first quarter. 2021 financial results and the corporate has performed nicely this yr. The quantity of hashrate bought jumped 122% in comparison with the identical interval of 2020. Moreover, Canaan noticed a “increased quantity of bitcoin mining machine orders” throughout the first quarter. Whole internet gross sales have been round 402 million yuan or $ 61.5 million based on Canaan’s unaudited monetary information.
“Our monetary efficiency improved considerably throughout the quarter, pushed by increased Bitcoin costs, elevated buyer demand for high quality mining equipment, and our skill to extend manufacturing and shipments of mining equipment.” , Nangeng Zhang, president and CEO of Canaan revealed within the audit report.
“Through the interval, we improved the manufacturing yields of our mining machines and ensured ample capability for future manufacturing by forging nearer partnerships with key foundry companions and different suppliers. We’ve got additionally maintained our strategic deal with enhancing our R&D capabilities to extend the standard and efficiency of our mining machines, ”added Zhang.
Canaan expects “yields and deliveries to extend dramatically”
Canaan expects first rate second quarter outcomes because of a lot of mining rig orders positioned. The monetary report says the corporate believes the second quarter will probably be at the least on par with the primary quarter, however may generate anticipated income of $ 150 million to $ 250 million. The enterprise outlook for Canaan’s first quarter monetary outcomes signifies:
As the corporate mass-produces its new technology of bitcoin mining machines, it additionally expects its yields and deliveries to extend considerably from the primary quarter of 2021. The corporate acknowledges that bitcoin worth developments are at the moment tough to foretell and can’t present monetary knowledge. because of the volatility of bitcoin costs on the finish of Could of this yr.
The primary quarter information follows two experiences in April the place Canaan bought $ 93.63 million worth from ASIC platforms to Genesis Digital Property, and 11,760 A1246 Subsequent Technology Avalonminers ASIC at an organization referred to as Mawson Infrastructure Group. Within the first month of January, Canadian bitcoin miner Hive Blockchain purchased 6,400 Canaan’s new technology mining machines.
The corporate’s first quarter 2021 monetary outcomes didn’t give Canaan shares a lift on Tuesday, as CAN shares closed at $ 10.26 per share at $ 9.80 per share. Canaan’s A1246 ASIC Avalonminer is the seventh strongest mining rig in the present day based on statistics from asicminervalue.com, which exhibits that an A1246 generates a revenue of round $ 21 per day at $ 0.12 per kilowatt hour.
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