TLDR
- Canaan reported Q3 revenue of $150.5 million, up 104% from last year
- Stock climbed 21% to $1.03 following the earnings announcement
- Mining equipment sales reached $118.6 million with strong US customer demand
- Company holds 1,610 Bitcoin after mining 267 BTC in the quarter
- Net loss improved to $27 million from $75 million year-over-year
Canaan stock jumped 21% on Tuesday after the company posted third-quarter results that doubled last year’s performance. The Bitcoin mining hardware manufacturer reported revenue growth that exceeded market expectations.
The company recorded $150.5 million in total Q3 revenue. This represents a 104% increase compared to the same quarter in 2024. Equipment sales drove most of the growth.
Mining hardware sales totaled $118.6 million for the quarter. CFO James Jin Cheng said the company received substantial new orders throughout the period.
US customers emerged as a major growth driver. North American sales accounted for 31% of total revenue. Cheng noted these customers placed large repeat orders during Q3.
“We are happy to witness the strong demand recovery of the North American market,” Cheng said during the earnings call.
Mining Operations Show Growth
Canaan’s direct mining business also performed well. The company generated $30 million in mining revenue. This marks a 241% jump from the previous year.
The company mined 267 Bitcoin during the quarter. Average revenue per coin reached $114,485. Canaan now holds 1,610 Bitcoin on its balance sheet as of October’s end.
The company’s financial health improved. Net loss narrowed to $27 million from $75 million in Q3 2024. Gross profit reached $16.6 million for the period.
CEO Defends Mining Focus
CEO Nangeng Zhang addressed industry shifts toward AI computing. Some miners have reduced operations to pursue artificial intelligence opportunities. Zhang believes Bitcoin mining remains the better short-term strategy.
“Deploying more Bitcoin miners is still the best way to allocate energy today and generate revenues,” Zhang told investors. He explained that AI infrastructure takes years to build and deploy.
The CEO said customers are planning for future AI-ready facilities. However, mining provides immediate revenue while those plans develop.
Stock Performance and Market Position
Shares closed at $1.03 on Tuesday. The stock gained another 2% in after-hours trading to $1.05. Despite the rally, Canaan stock remains down nearly 50% for 2024.
Other mining companies reported similar strength. HIVE Digital posted 285% earnings growth on Monday. BitFuFu doubled Q3 revenue on equipment and cloud mining demand.
The earnings beat comes as Bitcoin prices fluctuated below $90,000. The company’s performance suggests mining equipment demand remains strong regardless of short-term price movements.
Canaan’s results showed equipment sales made up roughly 79% of total revenue. The remaining revenue came from the company’s own mining operations.
The company increased its Bitcoin holdings while improving its loss position. Mining revenue jumped 241% year-over-year as operations expanded.
The post Canaan (CAN) Stock: Revenue Doubles as Bitcoin Mining Equipment Orders Surge appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.