Bitcoin (BTC) miner Canaan reported a 3.3% increase in its mining revenue for the first quarter, according to a May 26 statement.
According to Canaan, it generated $11.1 million in mining revenue between January 1 and March 31. This represents a 3.3% increase from the $10.7 million it raised during the fourth quarter of 2022 and a 130.2% year-on-year increase.
The increased revenue coincided with when the flagship digital asset’s value rebounded from the previous year’s loss. During the first quarter, several BTC miners recorded improved financial health as the asset saw a 70% increase.
Despite BTC’s hash rate and mining difficulty reaching new all-time highs, CryptoSlate reported that public miners held steady as they expected BTC’s value to keep rising.
Meanwhile, CEO Nangeng Zhang said the firm remained committed to expanding its mining business and intends to diversify its mining operations across more countries.
The Bitcoin miner said it held 623 BTC valued at $13.4 million as of March 31.
Overall revenue declined
Meanwhile, the company’s overall revenue fell to $55.2 million in 2023 Q1 from the $58.3 million recorded in 2022 Q4.
The decline is more pronounced on the year-on-year metric as it generated $201.8 million during the same period in 2022.
Speaking on this decline, Canaan’s Chief Financial Officer, James Jin Cheng, said the firm experienced a contraction in its sales because of the “the industry-wide reduction in selling prices, and unforeseen delays in payment and shipment following a series of U.S. bank failures.”
Additionally, Cheng noted that the company’s mining unit “encountered difficulties that postponed the increase of our installed hash rates.” All of these issues played a role in the reduced total revenues.
A breakdown of the revenue showed that the firm scored $44.1 million from its products, and $11.1 million from mining, while other revenue accounts for $0.3 million.
Meanwhile, Canaan said it sold more computing power during the first quarter of 2023. The company sold 4.2 million Thash/s, far above the 1.9 million Thash/s recorded in the fourth quarter of 2022.
Despite the decline, CFO Cheng said the company narrowed its operating loss during the first quarter by 31.4%. According to Cheng, this is a testament to the firm’s “diligent cost and expense control” measures.
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