Canaan found new financing when revenue fell 55% in Q3
Bitcoin (BTC) miner Canaan is looking for new capital amid a slump in its revenue and bottom line.
According to its Q3 2023 earnings report released on Nov. 28, the company is looking to sell $148 million of its publicly traded equity. A day earlier, Canaan announced an agreement with an undisclosed institutional investor to issue up to 125,000 preferred shares at $1,000 each for a total of $125 million.
In the year Compared to the third quarter of 2022, the company's revenue decreased by 55% to $33.3 million due to a decrease in Bitcoin (BTC) mining volume and a fall in the number of ASIC miners sold. The company posted a net loss of $110.7 million compared to net income of $6.3 million in the same period a year ago.
“We have experienced overall price competition and a softening of purchasing power on the demand front, which has created serious challenges for our sales,” said Canaan Chairman and CEO Nang Zhang.
Due to rising electricity costs and declining BTC prices, many Bitcoin miners filed for bankruptcy in 2022, disrupting sales of Bitcoin ASIC miners. However, market conditions have improved this year due to the easing of inflation and the recovery of Bitcoin prices. In the year On November 13, Bitcoin miners earned $44 million in block rewards and transaction fees, the highest ever in history.
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