In This Article:
-
Total Revenue: USD 73.6 million, marking a year-over-year growth of around 121%.
-
Product Revenue: USD 64.58 million, driven by strong sales volume.
-
Mining Revenue: USD 9 million, with 147 Bitcoins mined.
-
Gross Margin for Mining: 22%.
-
Non-GAAP EBITDA Loss: USD 36.80 million, narrowed by 46% year over year.
-
Cash Reserves: USD 72 million at quarter end.
-
Bitcoin Holdings: 1,231 Bitcoins, a record high.
-
Inventory Write-Down: USD 22.9 million, primarily from A13 series.
-
Operating Expenses: USD 35 million, decreased by 19% year over year.
-
Expected Q4 Revenue: Approximately USD 80 million.
Release Date: November 20, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Canaan Inc (NASDAQ:CAN) achieved a total revenue of nearly $74 million in Q3 2024, marking a year-over-year growth of around 121% and the highest revenue in the past five quarters.
-
The company successfully transitioned to mass production of its A15 series, with the A15 Pro model delivering 215 terahash per second of computing power.
-
Canaan Inc (NASDAQ:CAN) expanded its global sales reach, securing significant orders from North American mining companies such as CleanSpark and HIVE.
-
The company's mining operations produced 147 Bitcoins, a 5% increase quarter over quarter, despite challenging market conditions.
-
Canaan Inc (NASDAQ:CAN) increased its Bitcoin holdings to a record high of 1,231 Bitcoins, reflecting strong confidence in Bitcoin's long-term value.
Negative Points
-
The average Bitcoin price declined by over 7% sequentially, impacting miners' margins and creating a challenging market environment.
-
Canaan Inc (NASDAQ:CAN) recorded a non-GAAP EBITDA loss of $36.80 million, despite narrowing 46% year over year.
-
The company faced a $22.9 million inventory write-down and prepayment write-down in Q3, primarily due to older series inventory value reduction.
-
Operating expenses totaled $35 million, with a $6 million impairment of A13 series machines due to increased Bitcoin mining difficulty post-halving.
-
The company continues to face risks and uncertainties related to market fluctuations and regulatory environments, particularly in North America.
Q & A Highlights
Q: How does the demand for mining equipment in 2025 compare to the post-halving period in 2020? A: Nangeng Zhang, CEO: The patterns are similar, with demand typically rebounding after the market stabilizes post-halving. However, differences such as timing, Bitcoin price trends, and industry inventory levels exist. Demand continues to grow, with market fluctuations lessening and customers becoming more professional.