Chinese mining firm Canaan doubles its revenues despite a nationwide ban on crypto

Canaan, a Chinese manufacturer of cryptocurrency miners, has been increasing its mining operations, amassing 346.84 BTC by the end of June.

Canaan, a major Chinese maker of cryptocurrency miners, seems to be unaffected by the local crypto prohibition, as the company’s overall performance has continued to increase in 2022.

Thursday marked the formal release of Canaan’s financial results for the second quarter of 2022. The company reported a 117% rise in gross profit compared to the same time in 2021. The company reported Q2 earnings of 930 million renminbi, or around $139 million.

The company’s second-quarter net income increased by 149% to 608 million RMB, or $91 million, from 425 million RMB in the same time the previous year. Canaan highlighted that the foreign currency translation adjustment in Q2 was a gain compared to earlier losses caused by the growth of the U.S. dollar versus the RMB in Q2.

Canaan’s CEO, Nangeng Zhang, said that the company’s second quarter was difficult due to Bitcoin’s (BTC) drop below $20,000 in June, despite huge earnings.

Zhang said that Canaan has been extending its worldwide reach, most notably by establishing its international headquarters in Singapore. Additionally, the company has been aiming to expand its mining operations, earning more BTC with an upgraded power supply. Canaan possessed a total of 346.84 BTC, or $8.1 million, as of the end of June, according to the CEO.

James Jin Cheng, Canaan’s chief financial officer, repeated the CEO’s statement, noting that the business anticipates a more challenging market environment due to the lower Bitcoin price level, increasing energy prices, and numerous pandemic and geopolitical worries. 

The current cryptocurrency winter is not the main issue for Chinese cryptocurrency mining enterprises. As previously reported, China imposed a ban on all crypto activities, including mining and trading, in September 2021, compelling many enterprises to expand internationally and flee to other nations. Prior to the ban, China was shutting down a number of cryptocurrency mining facilities in an effort to save energy and limit cryptocurrency activities inside the nation.

China has reemerged as the second-largest Bitcoin mining nation by January 2022, indicating that the “great Chinese crypto ban” has had no effect on local crypto fans and businesses. According to the Cambridge Bitcoin Electricity Consumption Index, China continues to host 21% of the worldwide Bitcoin hash rate, second only to the United States, which generates 38%.

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