The CEO of Canaan Inc, which is listed on NASDAQ, a Chinese company focused on Bitcoin (Bitcoin) Mining equipment, debate On Tuesday’s conference call, China’s Bitcoin mining ban should provide subsidies to green energy users.
Zhang Nan further stated that the indiscriminate prohibition of Bitcoin mining does not take into account the potential economic benefits that may be brought about by embracing green energy mining. Zhang said mining can provide a solution to the oversupply of electricity in certain areas of the country, where the resulting low energy prices have attracted miners.
“For-profit miners prefer areas with low electricity prices, indicating oversupply and potential waste of energy. Bitcoin miners also help create jobs in poor areas and contribute to finances,” Zhang said.
Canaan Stock price It was up 24% on Tuesday and 42% this week.As Canaan’s stock price soared, the company released Financial performance In the first quarter of this year, it has shown amazing growth since this time in 2020.
The company’s revenue increased by 490% year-on-year, mainly from the sales of its ASIC mining equipment. After recording a net loss of US$5.9 million in the previous year, the company also recorded a net income of US$22.4 million.
“Driven by the increase in the price of Bitcoin, the increase in customer demand for high-quality mining machines, and our increased production and delivery capabilities for mining machines, our financial performance this quarter has improved significantly,” Nan Geng wrote in the quarterly report.
In the context of the decline in the price of Bitcoin, the stock price surge represented a rapid change after the company’s stock price fell 41% last month. The company’s business prospects predicted an increase in sales, but due to fluctuations in the value of Bitcoin, which had a knock-on effect on mining demand, no further financial guidance was provided.
The report stated: “The company recognizes that due to the price fluctuations of Bitcoin in late May this year, the trend of Bitcoin prices is currently unpredictable and it is unable to provide financial guidance.”