Shares in Canaan surged on Tuesday after the Bitcoin mining hardware maker reported its third-quarter revenues doubled from last year, driven by a high demand for equipment as multiple miners saw revenues increase.
Canaan said on Tuesday that its total Q3 revenues increased 104% from last year to $150.5 million due to a “substantial volume of new orders,” with its mining equipment revenues making up the lion’s share at $118.6 million.
James Jin Cheng, the miner’s chief financial officer, said in the company’s earnings call that a large number of sales came from clients in the US, who “started actively placing sizable and repeating orders.”
“Sales of North American customers contributed 31% of our total revenue in quarter three. We are happy to witness the strong demand recovery of the North American market,” he added.
Other miners have also been reporting strong earnings. HIVE Digital reported a 285% earnings increase on Monday, while BitFuFu doubled its third-quarter revenue off the back of demand for cloud mining and equipment as miners sought to capitalize on the rising price of Bitcoin.
Canaan shares jump on earnings
Shares in Canaan (CAN) closed trading on Tuesday up nearly 21% to $1.03 on the company’s earnings, with gains extending by nearly 2% after the bell to $1.05.
Canaan’s stock is down nearly 50% this year as many Bitcoin miners have pivoted to powering artificial intelligence, as the cost and difficulty of mining have increased while Bitcoin’s price has fallen.
The company reported it made $30 million in mining revenue over Q3, up 241% year over year, and a net loss of $27 million compared to $75 million a year ago.
Related: TeraWulf Q3 revenue up 87% as Bitcoin nearly doubles over the year
Canaan mined 267 Bitcoin (BTC) at an average revenue of $114,485 per coin and increased its holdings to 1,610 Bitcoin by the end of October.
CEO pitches Bitcoin mining as the best way to earn
Canaan CEO Nangeng Zhang told investors on an earnings call that some miners facing balance sheet pressure and share price performance issues are shifting toward AI, reducing mining operations over the medium term.
However, he still thinks Bitcoin mining is a viable option while the transition is underway, because the deployment of AI infrastructure takes time.
“Our customers, including ourselves, are thinking about how to build AI-ready mining facilities for the future,” he said. “At this stage, deploying more Bitcoin miners is still the best way to allocate energy today and generate revenues from this date, not waiting for another one or two or three years.”
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