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Canaan’s shares soared on Tuesday after the company revealed that their third-quarter revenues have doubled compared to last year. This impressive jump was fueled by a surge in demand for their Bitcoin mining hardware, as many miners reported a boost in earnings.
Canaan announced that their total Q3 revenues skyrocketed by 104% from last year to hit $150.5 million. This surge was largely attributed to a “substantial volume of new orders,” with mining equipment sales accounting for a whopping $118.6 million.
During the company’s earnings call, James Jin Cheng, the CFO, shared that a significant chunk of their sales came from US clients who “started actively placing sizable and repeating orders.”
He added, “Sales from North American customers contributed 31% of our total revenue in Q3. We’re thrilled to see such a strong recovery in demand from the North American market.”
Other miners have also been reporting impressive earnings. HIVE Digital saw a 285% increase in earnings on Monday, while BitFuFu doubled its Q3 revenue as miners rushed to take advantage of the rising Bitcoin prices.
Canaan shares leap after earnings
Canaan (CAN) shares finished Tuesday’s trading up nearly 21% at $1.03, and climbed even higher by almost 2% after hours, reaching $1.05.
Despite this spike, Canaan’s stock has dipped nearly 50% this year as some Bitcoin miners have shifted their focus to powering artificial intelligence. This transition comes as the cost and difficulty of mining have risen, while Bitcoin’s price has dipped.
Canaan reported earning $30 million from mining in Q3, showing a remarkable 241% increase year over year, along with a net loss of $27 million compared to $75 million from the previous year.
Related: TeraWulf Q3 revenue up 87% as Bitcoin nearly doubles over the year
They mined 267 Bitcoin (BTC) at an average revenue of $114,485 per coin, boosting their holdings to 1,610 Bitcoin by the end of October.
CEO champions Bitcoin mining as a top earner
Canaan’s CEO, Nangeng Zhang, shared during the earnings call that some miners, facing financial pressure and fluctuating share prices, are shifting gears towards AI, reducing their mining operations for now.
However, he believes Bitcoin mining is still a smart choice during this transitional phase, as setting up AI infrastructure takes time.
“We, and our customers, are thinking about how to create AI-ready mining facilities for the future,” he stated. “Right now, deploying more Bitcoin miners is still the best way to utilize energy and generate revenue without waiting another year or two.”
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