Canaan Adds 180 BTC to Reserves, Posting Better Than Expected Figures

China-based tech firm Canaan has boosted its Bitcoin holdings by 180 to a total of 346 BTC despite the market downturn.

The firm, which makes cryptocurrency mining equipment, reported sales of 1.65 billion yuan (around $238 million), a year-over-year growth of 52.8%. 

At the same time, the company’s net profit reached 608.9 million yuan (close to $87.8 million), an increase of 148.6% from the previous year.

Canaan was founded in 2013 and specializes in ASIC high-performance computing chip design, chip research, and development, computing equipment production, and software services that facilitate mining.

“Overall, we are fully aware of the downward pressure from the Bitcoin price since the last fourth quarter and expect it to bring prolonged headwinds to our performance in the coming quarters,” said Nangeng Zhang, Canaan’s CEO.

Mining company announce interim results

Meanwhile, Hong Kong-listed software firm Meitu also posted positive numbers despite warning last month that it may record a net loss on the back of an expected increase in the impairment of purchased cryptocurrencies.

Meitu’s interim results show that the company’s overall revenue was 971.2 million yuan ($140 million), a year-on-year increase of 20.5%. However, net loss increased significantly to 281.6 million ($40 million), compared to RMB 137.7 million ($19 million) in the same period last year, mainly due to the drop in cryptocurrency value.

BTC remains under $20K

At the time of writing, BTC remains under the crucial level of $20,000 and is hovering in the 24-hour range of $19,691 and $20,021. 

Jiang Zhaosheng, a senior researcher at the Ouke Cloud Chain Research Institute, said: “In the short term, the depreciation of encrypted assets will not have much impact on listed companies with abundant cash flow.”

However, Bitcoin (BTC) mining difficulty has also increased by 9.26% to 30.98 trillion, exceeding expectations and bringing difficulty close to its all-time high.