Canaan, the Beijing-based Bitcoin mining equipment manufacturer, reported unaudited financial results for the latest quarter. The report showed elevated losses and subdued revenue, which made the firm’s shares tumble in the premarket.

Canaan’s Nasdaq-listed Shares down 7%

Bitcoin mining machine maker Canaan released unaudited financial results for Q1 2023. The company’s US-listed shares fell more than 7% in premarket trading Friday.

According to the report, Canaan’s total computing power sold was 4.2 million Thash/s in the quarter ended March 31, 2023, up significantly from the 1.9 million Thash/s in the prior quarter. Year-over-year, the total computing power sold was slightly down from 4.3 million Thash/s.

Revenue came in at $55.2 million, down from $58.3 million quarter-over-quarter and well below the $201.8 million the company reported in 2022. Mining revenue stood at $11.1 million in Q1, up 3.3% from Q4 2022 and 130.2% from $4.8 million in Q1 2022.

Canaan’s Losses Remain High

Canaan’s bumpy start to the year was reflected in the company’s losses in the latest quarter. Although the losses narrowed from the last quarter of 2022, they remained significantly high, given that the company reported a robust profit in the year-ago period.

The mining rig manufacturer posted a gross loss of $47.5 million in Q1 2023, compared to a $64.1 million loss in the prior quarter and a gross profit of $123.5 million in the same period last year. Similarly, the net loss totaled $84.4 million in the most recent quarter, down from $91.6 million in Q4 2022, compared to a net income of $65.1 million a year ago.

“The first quarter of 2023 was a challenging start. The uncertainties in the market have made our performance less than ideal. Despite these difficulties, we remain committed to our business strategy and confident in our long-term prospects.”

– Nangeng Zhang, Chairman and Chief Executive Officer of Canaan.

Canaan’s earnings numbers began to decline in Q3 2022 after the crypto market downturn triggered by the FTX collapse. Earlier that year, the Chinese mining hardware firm entered new strategic partnerships to expand operations into Kazakhstan to weather the impact of Beijing’s crackdown on the crypto industry.

This article originally appeared on The Tokenist

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