Canaan faced a challenging quarter as mining Bitcoin became less profitable amid the digital asset’s price slide, CEO Nangeng Zhang said during the company’s earnings call. He noted that the business was also affected by a new factor: conflict flaring between the U.S. and Iran.
“Uncertainties related to the Middle East situation, energy prices, global liquidity and the policies continue to keep the industry in a cautious environment,” he said. “For us, a company going through a transition period, this kind of environment created a lot of pressure.”
The firm disclosed $62.7 million in revenue, contracting 68% from $196.3 million quarter-over-quarter. A majority of sales came from Canaan’s product arm, which generated $42.9 million, as the company said it completed final deliveries under a major U.S. order.
Zhang said that the company moved to strengthen its “survivability” during the quarter, which coincided with a $2.1 million sequential decrease in staffing costs. Overall, the company’s operating expenses declined to $31.4 million from $38.2 million.
During the quarter, Canaan acquired a 49% interest in Cipher Mining’s ABC Projects in West Texas, expanding the company’s access to American power infrastructure. Zhang said the move was tied to Canaan’s exploration of opportunities associated with AI and high-performance computing, providing the firm with “strategic flexibilities.”
