Crypto mining firm Canaan expects its annual RMB-denominated revenue to drop less than 15% despite the crypto market cap plummeting 70% in 2022.
Cryptocurrency mining giant Canaan continues to generate significant revenues from crypto operations despite the ongoing crypto mining crisis.
Canaan’s total revenue for the first nine months of 2022 was roughly 4 billion Chinese yuan (RMB), or about $573 million, a spokesperson for Canaan told Cointelegraph. As the firm expects to generate another 310 million RMB ($46 million) in Q4, the total annual revenues is expected to amount to 4.3 billion RMB ($619 million).
The amount is down around 14% from Canaan’s RMB-denominated revenue of 4.9 billion RMB last year. In USD, the total revenues were down about 21% from $783 million in 2021.
Canaan’s 2022 annual revenues would still be significantly bigger than in previous years, surging nearly 90% from 448 million RMB ($64 million) in 2020. In 2019, Canaan’s annual revenue amounted to 1.4 billion RMB ($201 million).
Canaan’s breakdown of revenue by services. Source: SEC report
Canaan’s financial success over the past few years comes after the company launched its own mining operations, expanding services beyond manufacturing crypto mining devices.
“We started our mining operations in mid-2021. One of our considerations is that when there is a shortage of mining machine demand, we can deploy some of our inventory into our mining operations to earn extra income,” Canaan said. Under certain circumstances, Canaan is able to resell their mining equipment, the firm’s representative stated:
“We balance our machine usage through mining, and our mining operation serves as a powerful support and supplement to mining machine sales.”
The spokesperson declined to disclose more details about the usage and reselling of used mining equipment.
The news comes amid the crypto mining industry suffering a major crisis, with 100% of public mining companies having to sell almost all crypto they mined in 2022.
On Dec. 28, crypto mining firm Argo Blockchain sold flagship mining facility Helios to Galaxy Digital in order to reduce its debt and improve liquidity. Previously, crypto mining firm Core Scientific also filed for Chapter 11 bankruptcy on Dec. 21 as a result of rising energy costs.