TLDR
- Canaan’s Q3 revenue climbed 104% year-over-year to $150.5 million
- Shares rose 21% to $1.03 after the earnings release on Tuesday
- US customers drove growth with 31% of total revenue from North America
- Company mined 267 Bitcoin and expanded holdings to 1,610 BTC
- Loss decreased to $27 million compared to $75 million in Q3 2024
Canaan posted strong third-quarter results that sent shares higher on Tuesday. The Bitcoin mining hardware company reported revenue growth that more than doubled from the prior year.
Total Q3 revenue reached $150.5 million. This represents a 104% increase compared to Q3 2024. The company attributed the growth to substantial order volume throughout the quarter.
Equipment sales made up the majority of revenue at $118.6 million. CFO James Jin Cheng highlighted strong customer demand during the earnings call.
North American buyers played a key role in the quarter’s performance. US customers contributed 31% of total revenue. These clients placed large orders repeatedly throughout the three-month period.
“We are happy to witness the strong demand recovery of the North American market,” Cheng stated.
Direct Mining Revenue Jumps 241%
Canaan’s own mining operations contributed $30 million to Q3 revenue. This marks a 241% increase from the same quarter last year.
The company extracted 267 Bitcoin during the period. Revenue per coin averaged $114,485. By October’s end, Canaan’s Bitcoin holdings totaled 1,610.
Financial performance showed improvement beyond revenue. The company’s net loss narrowed to $27 million. This compares to a $75 million loss in Q3 2024. Gross profit for the quarter reached $16.6 million.
Mining Remains Priority Over AI
CEO Nangeng Zhang discussed the industry trend of miners pivoting to AI. Some companies facing financial pressure have reduced mining to pursue artificial intelligence ventures.
Zhang argued that mining provides better immediate returns. He explained that building AI infrastructure requires significant time investment.
“Deploying more Bitcoin miners is still the best way to allocate energy today and generate revenues,” the CEO said. He acknowledged that customers are considering AI-ready facilities for the future.
However, Zhang emphasized that mining delivers current cash flow. AI deployment could take multiple years before generating comparable returns.
Share Price Movement
The stock closed Tuesday at $1.03 per share. This represented a 21% gain from Monday’s close. After-hours trading pushed shares up another 2% to $1.05.
The stock has declined nearly 50% year-to-date despite Tuesday’s rally. Mining sector stocks have faced headwinds as operational costs increased.
Other mining companies reported similar quarterly strength. HIVE Digital announced 285% earnings growth earlier in the week. BitFuFu also doubled its Q3 revenue.
The sector has seen renewed equipment demand as miners expand capacity. Bitcoin price volatility hasn’t dampened hardware purchasing activity.
Equipment sales represented approximately 79% of Canaan’s total revenue. The company’s mining operations accounted for the remainder.
Canaan holds 1,610 Bitcoin valued at current market prices. The company continues operating its mining business while selling hardware to other miners.
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