Mining-Rig Maker Canaan Q1 Revenue More Than Triples

Supercomputing solutions company Canaan (CAN), which specializes in bitcoin mining hardware, said revenue surged 237% from the year-earlier quarter to $213.9 million.

• The one analyst cited on Yahoo Finance had forecast $27.37 million. Seeking Alpha, also with one analyst, estimated $213.86 million.
• Net income climbed to $69.7 million. Earnings per share were 2.7 cents, or 41 cents per ADS, the company said. Seeking Alpha cited an EPS estimate of 50 cents.
• The Beijing-based company faced a "logistics suspension" caused by Covid-19 lockdowns in China, which delayed shipments and adversely affected its revenue for the quarter, said CEO Nangeng Zhang.
• "Looking ahead, while we are cognizant of the near-term headwinds, we are confident that our extensive experience, increasingly globalized operations, and execution capabilities put us in a solid position to navigate the current period of uncertainty," Zhang said.
• The company held 166.96 bitcoins on its balance sheet as of March 31.
• Shares of the company rose about 15% to $3.58 at market open, still 60% below its value a year ago, when they were trading around $8.50. Canaan bought $10.3 million of its own stock in the quarter, completing a $20 million share repurchase program announced in September 2021.
• During the quarter, the company approved a plan to buy up to $100 million of its own stock in the 24 months starting March 16, 2022.
• For the full year, Canaan posted a $361.2 million profit, compared with a $31.5 million loss in 2020.
• At the Bitcoin Conference in Miami in April, the mining machine maker released a new model, the Avalon 1266, which rakes in 100 terahash/second (TH/s) of computing power at 35 joules per terahash (J/T) of power efficiency. That's less than MicroBT's new WhatsMiner M50S, which features 126 TH/s of computing power and 26 J/T efficiency, and Bitmain's new S19 XP Hyd. that can hit 255 TH/s at 20.8 J/T.

Read more: Canaan Unveils Bitcoin Mining Machine, Sees Speedier ASIC Market Growth

UPDATE (May 19, 13:54 UTC): Adds Seeking Alpha estimate, details about logistics issues, stock buybacks and machine models.