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Wu said that the blockchain learned that Canaan released the latest third quarter financial report on the 30th. Although the data is not as good as the second quarter, it revealed a large amount of pre-sales and the possibility of entering the digital currency field in the future. Canaan’s market value/share price has increased by 200% in the past February, becoming the most valuable cryptocurrency mining company in the US stock market.
In the third quarter, Canaan’s total revenue was 163 million yuan (approximately 24 million U.S. dollars), a decrease of 8.5% from the second quarter. Regarding the reason for the quarter-on-quarter decline in revenue, Canaan said that the company’s sales in the second quarter were mainly based on inventory. By the beginning of the third quarter, the inventory had been basically sold, so revenue has declined, and the pre-sale amount was not included in the quarter’s revenue.
Research and development expenses in the third quarter were 32.1 million yuan, an increase of 23% from the second quarter. The gross loss was 17 million yuan, and the gross profit for the second quarter of 2020 was 43.3 million yuan. Canaan explained that the main reason is that the company’s mass production and wafer launch gradually began in the third quarter, but these wafers put into production in the third quarter will basically be completed and delivered in 90-120 days.
The data is not so good, but the stock price has soared, and Wall Street is looking at expectations. Canaan’s new mining machine A1246 series products were released in the third quarter and came to 38J/T, which can compete head-on with the Shenma M30S. As Ebang and Xindong gradually fade out of the Bitcoin mining machine industry, Bitcoin mining machines have previously become a battle for hegemony between Shenma and Bitmain, and Canaan has returned to the first echelon with its new mining machines.
Canaan’s chairman Zhang Nangeng said that as of the end of November, the total amount of pre-sale orders for mining machines in the fourth quarter of this year and the first quarter of next year was over US$45 million (about 300 million yuan). Canaan is currently selling futures for mining machines in the second quarter of next year.
Canaan’s performance has risen. In addition to the release of new mining machines and returning to the first echelon, the more important reason is that the price of Bitcoin has soared suddenly since October. Due to the frantic buying by mainstream institutions, Jiang Zhuoer, Justin Sun and others predict that the price of Bitcoin may reach US$100,000 in 2021.
Regarding the future, Zhang Nangeng said that in the past six months, the company has conducted sufficient research and demonstration on the domestic and foreign markets and policy environment, and has accumulated sufficient industry resources and experience for the development of new businesses. The company has already carried out legally and compliantly. The mining business and the holding of digital currency have made the final preparations . The mining-related business will be carried out in the next 6 months. The mining machine will be used as the cornerstone to develop upward and become a complete blockchain ecological chain. the company.
After holding digital currency, and in the blockchain ecology, whether it will engage in the business of holding digital currency, such as the current mining financial services such as Bitmain and Binyin, which are currently under development, Canaan did not provide a more detailed explanation.
Two other crypto mining-related companies currently listed on the US stock market include Yibang and Bit Digital. Ebang is the most radical in the field of digital currency, and has successively announced the establishment of companies in Singapore, Canada, New Zealand, Australia and other places to expand cryptocurrency exchanges and related financial businesses. Bit Digital is the company that Yuhong acquired and filled in the mining business. As of September 30, 2020, there were 22,869 mining machines in operation, and 949.51 bitcoins had been obtained. Unaudited revenue was confirmed to be approximately US$10.08 million. .
Although Yibang had previously relied on positive cryptocurrency news to stimulate its share price soaring, Canaan has recently overtaken it. As of 8:00 pm on the 30th, Beijing time, the market value of Canaan, Yibang, and Bit Digital were 900 million, 647 million and 276 million US dollars respectively. In September, Canaan’s market value was only 300 million U.S. dollars, and its stock price/market value soared by 200% within 2 months, which was related to the rising price of Bitcoin and its good sales.
As of September 30, FMR Fidelity has newly held 2,714,809 shares of Canaan. It is currently one of Canaan’s largest institutional investors. If held so far, it will obtain more than 200% of the income. Fidelity emptied once in June and then bought again.
Canaan’s follow-up core issues worthy of attention include: the stability and subsequent delivery of the performance of the large computing power mining machine; the number of chip production capacity acquired in 2021; whether the blockchain business other than the mining machine can tell a story; the AI business can be separated Domestically listed.
Zhang Nangeng said that in the field of AI chips, monthly shipments are currently stable at around 30K, and next year’s monthly shipments are expected to stabilize at more than 50K, with annual revenue striving to reach tens of millions. The new generation of artificial intelligence chip K510 has also been launched and is expected to be released in the first quarter of next year.