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Top cryptocurrency news: Chinese mining giant Canaan doubles profits despite the blanket crypto ban

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Canaan, a major Chinese cryptocurrency miner manufacturer, appears to be unconcerned with the local crypto ban since the company's overall performance has continued to increase in 2022.

On Thursday, Canaan officially released its financial statistics for the second quarter of 2022, claiming a 117% growth in gross profit over the same period in 2021. According to the company, earnings in the second quarter reached 930 million renminbi (RMB), or around $139 million.

The company's sending money net income in the second quarter was 608 million RMB or exchange rate history, or $91 million, up 149% from 425 million RMB in the same period of last year. Canaan stated that the foreign currency translation adjustment in Q2 was a profit compared to previous losses due to the US dollar's strengthening versus the RMB throughout the quarter.

Despite posting considerable profits, Canaan found the second quarter hard owing to the Bitcoin currency rate falling below $20,000 in June, according to the company's CEO, Nangang Zhang.

"The COVID-19 confinement lockdown in major Chinese cities also caused significant interruptions to our regular operations and demand for our AI chips," he explained.

Canaan, according to Zhang, has been extending its global reach, most notably by creating an international headquarters in Singapore. The company has also been aiming to expand its mining operations, creating more BTC with a better power supply. According to the CEO, Canaan had 346.84 BTC, or $8.1 million, as of late June.

"We are fully aware of the negative pressure from the preferred currency Bitcoin price since the fourth quarter and anticipate that it will continue to weigh on our performance in the future quarters. Nonetheless, we believe in Bitcoin's unique value and long-term possibilities."

Canaan's chief financial officer, James Jin Cheng, confirmed the CEO's sentiments, noting that the company anticipates a more difficult market environment due to the lower Bitcoin price level, increasing energy prices, and numerous pandemic and geopolitical worries. He stated:

"As the price of BTC fell further in Q2, we responded by lowering our product pricing for spot sales to alleviate the burden on our clients. We anticipate a significant fall in gross margin in the second part of this year."

However, the current cryptocurrency winter is not the only foreign exchange source of concern for Chinese crypto mining enterprises. As previously reported, the Chinese yuan Croatian kuna imposed a total ban on all crypto operations, including mining and trading, in September 2021, forcing many companies to drive global expansion and relocate to other nations. Before the ban, China was shutting down many crypto mining facilities to preserve energy and limit the country's crypto activities.

The "great Chinese crypto ban" appears to have had no impact on local crypto enthusiasts and businesses, as China reemerged as the second-largest Bitcoin mining country by January 2022. According to the Cambridge Bitcoin Electricity Consumption Index, China continues to host 21% of the entire worldwide Bitcoin hash rate, trailing only the United States (38%).

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Read also: Will the launch of Ripple ODL in Brazil increase the value of XRP?

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