Canaan, a Chinese mining company for Bitcoin, recently reported slight improvements in a couple of its financial metrics in the very first quarter of 2023. This progress, though, is still pretty far behind where it was last year in the same period. According to a report, unaudited, that was posted on the investor relations page, the net loss of the Chinese company was around $84.4 million in Q1, which was lower than its $91.6 million net loss reported in the previous quarter. This net loss represents a huge reversal when compared to the same period last year when the firm had reported a net income of around $65.1 million.
Canaan Had A Slightly Better Q1 In 2023
The diluted net loss per American depository share in Q1 of 2023 was $0.51, which had been reduced from $0.55 in the previous quarter, while the diluted net earnings per ADS in the same period of 2022 stood at $0.38. According to information from Investopedia, an ADS is just an equity share in a non-US company that was held by a depository bank in the United States, and is available for purchase by the investors. Canaan has already claimed that it has started expanding its operations despite the ongoing bearish market, and an associated drop in its earnings. The quarterly result was impacted majorly by a bunch of factors, which includes a low market demand that hindered product revenue.
The assets of cryptocurrency held by Canaan as of 31st March 2023 totaled a sum of 623 BTC, which has a worth of $13.4 million, according to the report. Cash and cash equivalents were at a sum of $72 million when compared to $101.6 million on the 31st of December 2022.