Canaan Inc. (NASDAQ: CAN), a Beijing-based hardware manufacturer of digital currency mining equipment, reported a record revenue increase of 507.3 percent year over year to $167.5 million in the second quarter of FY21.

In a quarterly earnings report, the NASDAQ-listed company stated it sold 5.9 million terahashes per second (TH/s) of hashing power during the quarter, up 126.9% year over year from 2.6 million TH/s. This hash rate accounts for around 4% of the total current hashing power of the BTC network.

“We delivered a remarkable performance in the second quarter of 2021. Despite unexpected regulatory policy dynamics and Bitcoin price volatility, we achieved record-high topline results as we delivered a robust 5.9 million Thash/s of computing power to our clients.” 

Canaan’s Chairman and CEO Nangeng Zhang commented

Canaan‘s better-than-expected second-quarter net revenue was the highest in the company’s history, jumping 507.3 percent from $27 million in the same period of 2020 and 168.6% from $61.5 million in the first quarter of 2021.

Canaan‘s gross profit for the first quarter of 2021 was $66.2 million, increasing 887.0 percent from $6.1 million in the same time of 2020 and 119.9 percent from $29.6 million.

The company posted a net profit of $37.9 million, which it described as “the Company’s greatest quarterly net profit since its initial public offering in 2019.” In the same time as 2020, the company had a net loss of $2.4 million.

“We reported solid financial results for the quarter. Besides the record-setting revenue of RMB1.08 billion and a non-GAAP net profit of RMB320.1 million, our vigorous book of preorders, primarily from overseas clients, have brought abundant prepayments, which further enhanced our cash position.”

James Cheng, CFO of Canaan, stated

The company had $189.0 million in cash and cash equivalents as of June 30, 2021, and $161 million in contract liabilities for equipment preorders that will not be delivered in the coming quarters.

Investors should be aware that the fluctuating block reward mining industry’s prognosis significantly impacts Canaan‘s stock performance. The report gave an imprecise positive outlook, claiming that overall sales for the third quarter will “have a sequential increase of 10% to 30%.” e delivered in the future quarters.

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