Despite the recovery in the broader crypto market, mining company Canaan has reported a fall in revenue. It has also reduced its Bitcoin (BTC) holdings.
Mining companies were largely hit in last year’s crypto winter. Despite Bitcoin’s rally in the first quarter, some companies are yet to recover from the impact of 2022.
Canaan’s Declining Revenue
Today, the mining company Canaan announced its quarterly financial report for the first quarter of 2023. The company’s revenue declined by 5% in Q1, 2023, compared to Q4 2022.
The revenue stands at $55.2 million, falling from $58.3 million in the previous quarter. And compared to Q1 2022, revenue is down by over 72%.
Canaan’s CFO, James Jin Cheng, explained that the revenue decline was due to delays in payment and shipment. Furthermore, he believes that catastrophic events, such as banking failures in the U.S. impacted revenue.
Canaan Mining Disposes of Bitcoin
In the fourth quarter of 2022, Canaan had 757 BTC on its balance sheet. The company had been increasing its holding quarter-on-quarter since Q2 2021.
But for the first time, Canaan decreased its Bitcoin holdings compared to the previous quarter. Currently, the mining company has 623 BTC on its balance sheet.
The company made a capital gain of $2.6 million by selling Bitcoin, which helped decrease operational expenses and, eventually, gross loans.
Also, due to various other measures, Canaan reduced its gross loss by 25% in Q1 2023. The mining company recorded a gross loss of $47.5 million compared to $64.1 million in Q4 2022.
However, it has a long way to go to reach back to Q1 2022 figures. In the first quarter of last year, Canaan made a gross profit of $123.5 million. Lastly, in pre-markets, Canaan’s stock is down by 5.49%.
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