Strongest quarter in three years – Yet, Canaan’s CAN stays below $1!
Crypto miner Canaan simply delivered its strongest quarterly income in three years. Nevertheless, as a substitute of celebrating, the market centered on its sub-$1 inventory value and potential Nasdaq delisting.
Right here’s what it is advisable know.
File income can’t get the market to smile
Canaan’s newest earnings report delivered numbers the corporate hasn’t seen in years, with a 121.1% leap in fourth-quarter income to $196.3 million.
Supply: X
The numbers were powered by mining output and excessive demand for its machines. Mining income alone climbed 98.5% year-on-year to $30.4 million.
On the identical time, Canaan expanded its digital asset reserves, ending the quarter with a file 1,750 BTC (valued at almost $120 million) and three,950 ETH value about $7.9 million.
Supply: Canaan
Machine shipments additionally hit a milestone, with a file 14.6 exahashes per second (EH/s) delivered in the course of the quarter. Computing energy gross sales rose by 60% too, in comparison with a 12 months in the past.
Success overshadowed by falling inventory
Canaan continued to scale its mining footprint in This autumn, increasing put in capability to 9.91 EH/s, with 7.65 EH/s actively working. In the meantime, Bitcoin community’s hashrate went from a peak of 1,150 EH/s in mid-October to round 980 EH/s.
And but, the operational positive aspects did little to reassure traders. On the time of writing, CAN was buying and selling at $0.57, down 6.87% over the day.
Extra bother forward?
The share value is now creating an even bigger downside. Inventory is down about 18% because the begin of the 12 months; a 70.2% fall over the previous 12 months.
Supply: Canaan
On 16 January, the Singapore-based miner disclosed a Nasdaq warning, stating that it was now not in compliance with the trade’s minimal bid requirement. To keep away from delisting, Canaan should push its closing share value again above $1 for at the very least 10 consecutive buying and selling days.
The corporate has 180 days till 13 July to fulfill the rule.
Ultimate Ideas
- Canaan posted a 121% income surge, however its sub-$1 inventory value retains Nasdaq delisting threat in focus.
- With a deadline to regain compliance, CAN’s subsequent strikes might make or break.
