Canaan Inc. (NASDAQ: CAN), a leading Bitcoin mining company, has announced its unaudited financial results for the second quarter of 2023. The company reported a significant increase in mining revenue, surpassing expectations.

In the second quarter, Canaan’s total revenue reached $73.9 million, representing a 33.7% growth compared to the previous quarter. Revenue from BTC mining also saw a substantial increase, rising 43.3% from $11.1 million to $15.9 million.

Despite these positive results, Canaan’s second-quarter revenue is lower than the $245.9 million reported in the first quarter of 2022. This is likely due to the ongoing impact of the bear market in the cryptocurrency industry.

Canaan CEO Nangeng Zhang commented on the financial report, stating, “We navigated the challenges in the second quarter of 2023, surpassing our topline guidance to achieve $73.9 million in revenue. Despite the relatively stagnant bitcoin price in the second quarter, our endeavor to drive sales across various fronts yielded encouraging results.“

Canaan’s Bitcoin Holdings

In addition to its revenue growth, Canaan disclosed that it held 1,125 bitcoins as of June 30, 2023. The total value of these bitcoins is approximately $28.8 million. The company owned 747 of these bitcoins, while the remaining 378 BTC was from customer deposits.

CFO James Jin Cheng noted the improvement in both sales and mining activities during the second quarter, contributing to the better-than-expected revenue performance. He stated, “Despite a decrease in average selling price, our product sales grew by 31.3% quarter over quarter, driven by increases in total computing power sold.“

Looking ahead, Canaan predicts a decline in revenue for the third quarter due to prevailing market conditions. The company reported a net loss of $110.7 million in the second quarter, compared to a net loss of $84.4 million in the first quarter. In the same quarter of the previous year, Canaan had a net income of $90.1 million.