Crypto Mining Rig Maker Canaan's Q4 Revenue Sunk 82% to $56.8M

Crypto mining rig maker Canaan (CAN) reported a year-on-year revenue decrease of 82% to $56.8 million in the fourth quarter of 2022 as it increasingly focuses on self-mining rather than selling machines, according to a Tuesday press release.

Canaan's mining revenue was $10.5 million in the fourth quarter, up 368.2% compared to the same period in 2021. In the same time period, it sold 75.8% less computing power.

Q4 net loss per the company's American depositary shares (ADS) was 38 cents, compared to net earnings of 4 cents in the previous quarter and net earnings of $1 in Q4 2021.

Canaan's mining machines saw low demand in the fourth quarter of 2022, depressed by a slump in the price of bitcoin.

The manufacturer has been increasingly focused on self-mining "to mitigate demand risks during the market downturn," according to CEO and Chairman Nangeng Zhang. Canaan has installed 3.8 EH/s of computing power as of the end of February, he said .

Canaan expects to bring in $65 million in revenue in the first quarter of 2023.

At the time of writing, shares of Canaan were trading flat at $2.51 during pre-market trading.