Bitcoin miner maker Canaan records highest quarterly profit since 2019 IPO

Despite Bitcoin's price drop ( BitcoinTC) in Q2 20,21, Canaan, a mining hardware manufacturer, has seen significant business growth during this period.

Canaan's unaudited Q2 financials released Tuesday shows that the company earned more than $1 billion in Chinese renminbi (roughly $167.5million) in total net revenues for Q2. This is the highest quarterly revenue for the Bitcoin miner maker.

Canaan's Q2 revenues represent a 168% increase over the figures in its first quarter financials, and a 507.3% rise when compared with Q2 2020.

The report also showed a $37.9million net profit, which was an increase of 3% in total revenue. The document states that this figure represents the highest quarterly net profit for the company since its initial public offering in 2019.

Cointelegraph reported that Canaan lost $33 million in Q1, despite positive Bitcoin price movements which dominated the first months of 2021.

Canaan's Q2 profit and revenue performance was aided by significant inventory purchases made from major mining companies. Tuesday's report revealed that Canaan delivered hardware at a rate of 5.9 million Terahashes per Second (TH/s), a 200% increase over its Q1 delivery figures.

Genesis Digital Assets, which announced the purchase by Canaan of 20,000 Bitcoin miners, had plans to purchase an additional 180,000 rigs.

Nangeng Zhang, Canaan's CEO, described Q2's performance as "remarkable" and added, "Despite unexpected regulatory policies dynamics and Bitcoin price volatility we achieved record-high topline outcomes as we delivered a strong 5.9 million TH/s computing power to clients."

At the time of writing, Canaan’s share price has risen more than 5%, but still isn't close to its mid-March 2021 high of $36. As the stock has increased by 37% since January 1, it is still positive in terms of price performance.