Despite the mining crisis, Canaan expects only a small drop in turnover in 2022

Canaan, the cryptocurrency mining giant, seems to care little about the current mining crisis. The company continues to generate significant revenue from crypto operations despite the market situation.

Turnover Canaan still significantly higher than in previous years

In 2022, Canaan’s projected total revenue is about 4.3 billion Chinese Yuan. This amounts to just over €581 million. Although a significant amount, this turnover is about 14% lower than last year, when it amounted to 4.9 billion Chinese Yuan, or about €735 million.

Canaan’s annual revenue in 2022 would still be significantly larger than in previous years, with an increase of nearly 90% to RMB 448 million (approximately €60 million) compared to 2020. In 2019, Canaan’s annual revenue was “only 1.4 billion RMB, or approximately €189 million.

Mining activities are powerful support and replenishment

Canaan’s financial success comes as the company launched its own mining business. This expanded their services beyond the production of crypto miners. The company stated the following about this:

We started our mining activities in mid-2021. One of our considerations is that when there is a shortfall in demand for mining equipment, we can deploy some of our inventory in our mining operations to generate additional revenue. We balance our machine usage through crypto mining and our mining operations serve as a powerful support and complement to the sale of mining equipment.

Finally, it is striking that Canaan has had such a good year despite the crypto mining industry going through a major crisis. Many companies have had to sell almost all of their minted cryptos during the year to keep paying the bills. Several crypto mining companies also went bankrupt during the year, including Argo Blockchain and Core Scientific. It is not yet known what the coming years will offer in terms of crypto mining.

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