Chinese Mining Giant Canaan Doubles Its Profits Despite Blanket Crypto Ban

Chinese crypto miner maker Canaan has expanded its mining activity, racking up a total of 346.84 BTC by the end of June .

Leading Chinese cryptocurrency miner maker Canaan appears to have no problem with the local crypto ban as the company's overall performance continued to grow in 2022.

Canaan officially announced its financial results for the second quarter of 2022 on Thursday, reporting a 117% increase in gross profit compared to the same period of 2021. According to the company, second quarter earnings amounted to 930 million renminbi (RMB), or nearly $139 million.

The company's second-quarter net profit was RMB608 million, or $91 million, an increase of 149% from RMB425 million a year ago. Canaan noted that the foreign currency translation adjustment in the second quarter was a gain from previous losses due to the appreciation of the US dollar against the RMB in the second quarter.

Despite strong earnings, Canaan found the second quarter difficult as Bitcoin (BTC) fell below $20,000 in June, said company CEO Nangeng Zhang.

"The COVID-19-related lockdown in key cities in China has also caused severe disruptions in our daily operations and demand for our AI chips," he noted.

Zhang mentioned that Canaan has expanded its global presence, including establishing its international headquarters in Singapore. The company also strived to expand its mining business, generating more BTC with an improved power supply. At the end of June, Canaan held a total of 346.84 BTC, or $8.1 million, the CEO said, adding:

“We are fully aware of the downward pressure exerted by the price of Bitcoin since the last fourth quarter and expect it to bring prolonged headwinds to our performance over the coming quarters. Nevertheless, we believe in the unique value of Bitcoin and its long-term prospects. »

Canaan's Chief Financial Officer, James Jin Cheng, echoed the CEO's remarks, saying the company expects a tougher market environment from...