US listed crypto miner Canaan's gross profit increased by 417.0% over the last quarter

Canaan became the first Chinese Hangzhou-headquartered supercomputing company to become publicly traded in New York in November 2019 and raised USD 90 million.

The company posted strong revenue growth for the first quarter despite challenges from the Covid-19 outbreak.

Canaan said it has recently developed a SaaS product (Software as a service) which its partners can use to build and operate a cloud mining platform. Cloud mining allows users to mine digital currency without having to buy and maintain mining hardware and spend on electricity a trend that has been gaining popularity. This also puts the company in a great position against its competitors. Nangeng Zhang, the chief executive officer of Canaan, said:

We also lowered the barrier for consumers to enter the Bitcoin mining space through a series of SaaS solutions designed to help our clients reduce the costs of maintaining our mining machines

Mr. Quanfu Hong, Chief Financial Officer of Canaan stated:

Despite facing increasing macroeconomic uncertainties, we carried through our growth momentum to deliver better-than-expected financial results for the first quarter of 2020. Our total net revenues in the first quarter grew by 44.6% year over year to RMB68.3 million, driven by increases in total computing power sold and the average selling price per Thash in the period.

Highlights from the report

• Total computing power sold increased by 18.4% to 0.9 million Thash/s from 0.7 million Thash/s in the same period of 2019.
• Total net revenues increased by 44.6% to RMB68.3 million (US$9.6 million) from RMB47.2 million in the same period of 2019.
• Gross profit increased by 417.0% to RMB2.4 million (US$0.3 million) from RMB0.5 million in the same period of 2019, while gross margin expanded to 3.5% from 1.0% in the same period of 2019.
• Net loss narrowed to RMB39.9 million (US$5.6 million) from RMB67.9 million in the same period of 2019.
• Non-GAAP adjusted net loss was RMB38.2 million (US$5.4 million) compared to RMB63.9 million in the same period of 2019.