Canaan, a Bitcoin mining company listed on the NASDAQ, reported its unaudited financial results for Q2 2023. The company saw growth in computing power sold and BTC mining revenues, but faced a significant net loss of $110 million. Revenues for Q2 2023 totaled $73.9 million, up from $55.2 million quarter-on-quarter. This consisted of $57.9 million from products revenue and $15.9 million in Bitcoin mining revenue. BTC mining revenues saw a 43.3% growth compared to Q1’s $11.1 million. The company attributed this surge to the recovery in Bitcoin prices and the consequent rise in Bitcoin rewards.Canaan also reported significant growth in its total computing power sold, reaching 6.1 million Thash/s, up 45% quarter-on-quarter. However, the company also detailed net losses totalling $110.7 million in Q2, which it attributed to non-cash accruals and provisions reflecting changes in selling prices, regulatory shifts, and partner agreements. This included inventory write-down, provision for commitment reserve and impairment of property and equipment which totaled US$54.7 million.As of June 2023, Canaan’s listed cryptocurrency holdings included 1,125 BTC valued at US$28.8 million. 747 BTC are owned by Canaan, while 378 BTC are attributed to customer deposits. The company also reported that it had suspended 2.0 exahash/s of its mining computing power based in Kazakhstan to ensure legal compliance with the Rules for Licensing of Digital Mining Activities coming into effect. Canaan is in the process of obtaining a specialized license to continue its operations and expects a reduction in its Q3 BTC generation as a result of the offline hardware.

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Information	Details
Geography	Asia
Countries	🇨🇳 🇰🇿 🇺🇸
Sentiment	neutral
Relevance Score	8
People	Canaan CFO, James Jin Cheng
Companies	Rules for Licensing of Digital Mining Activities, BTC, Canaan, Kazakhstan, Bitcoin, U.S., NASDAQ
Currencies	Ethereum, Bitcoin, US Dollar, kazakhstani tenge
Securities	None