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Canaan Crypto Stock to Hit New Lows After Reporting 82% Drop in Revenue

2 mins
Updated by Geraint Price
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In Brief

  • Canaan has been hitting lower lows after rejections.
  • The mining company reported a 82% drop in revenue compared to Q4 2021.
  • Canaan has been increasing its Bitcoin holdings quarter-on-quarter.
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Canaan crypto stock reported a revenue drop of 82.1% to $56.8 million in the fourth quarter of 2022 and may fall further.

Canaan, the China-based mining hardware manufacturer, reported revenue of RMB 391.9 million ($56.8 million) in the fourth quarter of 2022. That is a decrease of 59.9% from the third quarter’s revenue of RMB 978.2 million ($140.9 million). And, compared to Q4 2021, it is a drop of a whopping 82% from RMB 2,184.6 million ($314.55 million).

Canaan Increases Bitcoin Holdings Quarter-on-Quarter

Canaan also focused on self-mining in 2022; hence its mining revenue has been growing quarter-on-quarter. In Q4 2022, the mining revenue was RMB 72.2 million ($10.5 million), a growth of 16.3% from the mining revenue of RMB 62.0 million in Q3 2022. ($8.9 million).

Mining revenue is up 368.2% compared to Q4 2021’s RMB 15.4 million ($2.2 million.)

The screenshot below shows that the company has increased its Bitcoin holdings quarter-on-quarter, and Q4 Bitcoin holding was 757.

Canaan increases its Bitcoin holding
Source: Financial report

Gross Loss Due to Crypto Winter?

Canaan incurred a gross loss of RMB 230.9 million ($33.5 million) in Q4 2022. In contrast, the third quarter was profitable, with a gross profit of RMB 219.3 million ($31.6 million).

Chief Financial Officer James Cheng explains, “Our gross loss was partially due to greater depreciation as a result of our growing Bitcoin mining fleet.”

Canaan stock has been in a downtrend, hitting lower lows after rejection from the 50 weekly Simple Moving Average.

Canaan crypto stock chart from TradingView
Source: TradingView

On Monday, other crypto stocks also closed in the red. MicroStrategy dropped by 4.7% and Coinbase by 2.7%.

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For BeInCrypto’s latest Bitcoin (BTC) analysis, click here

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Harsh Notariya
Harsh Notariya excels in delivering SEO-optimized crypto news under tight deadlines. Previously, as a Growth Marketer at Sporty and a Community Consultant at Totality Corp, he significantly boosted community engagement and followers. Harsh also crafted engaging content for top crypto influencer Shivam Chhuneja, blending meme references for an educational yet fun experience. His versatile skills make him a notable figure in crypto journalism.
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