Major Bitcoin (BTC) mining gear producer Canaan introduced it has moved past its present enterprise mannequin and turn out to be Bitcoin miners. This is seen because the “logical next step” to optimize their income, improve their provide chain and stock administration capabilities, and accumulate BTC.
Canaan Becomes a Bitcoin Miner
Canaan is “promoting their own crypto mining business in Kazakhstan with their latest Avalon Miner units up and running,” the corporate mentioned in an emailed press release at present. In this fashion, they’re “implementing the 2021 strategic plans announced earlier this year.”
As for the reasoning behind the transfer, one is that it’ll permit Canaan to immediately accumulate BTC, which “is now broadly accepted as an investable asset class and due to this fact has important upside potential for Canaan. “
The second purpose, Nangeng Zhang, President and CEO of Canaan, mentioned that the workforce believes that their self-powered Bitcoin mining enterprise will assist enhance the corporate’s monetary efficiency, whereas additionally opening widen their enterprise scope and buyer base.
As reported earlier this month, Canaan posted complete internet gross sales of $61.5 million within the first quarter (Q1) of this yr, decrease than the $68.3 million in Q1 2020, however increased than the $38.2 million mark. USD of This fall 2020.
Zhang added that, “as we integrate more industry resources into our operations, we believe this business will allow us to revitalize our mining pool, protecting us from Bitcoin volatility and ensure our inventory is sufficient during bull markets.”
Furthermore, Nangeng Zhang, President and CEO of Canaan, mentioned that the workforce believes their self-powered Bitcoin mining enterprise will assist enhance the corporate’s monetary efficiency, whereas increasing its attain. enterprise and their buyer base.
As reported earlier this month, Canaan posted complete internet gross sales of $61.5 million within the first quarter (Q1) of this yr, decrease than the $68.3 million in Q1 2020, however increased than the $38.2 million mark. USD of This fall 2020. Their internet belongings. earnings have been $200,000, whereas the corporate recorded a loss each in Q1 and This fall 2020.
Zhang added that, “as we integrate more industry resources into our operations, we believe this business will allow us to revitalize our mining pool, protecting us from Bitcoin volatility and ensure our inventory is sufficient during bull markets.”
According to the corporate, usually, mining machine manufacturing and gross sales are intently linked to the value of the underlying cryptocurrency, comparable to BTC, and extreme volatility in that value can result in volatility. extreme within the income stream of mining {hardware} distributors.
“Diversifying into the mining sector not only reduces operational risk, but also significantly improves Canaan’s agility and ability to navigate rapidly evolving market conditions,” the corporate mentioned.
When the market “slows down”, miners will profit from having mining machines accessible of their warehouses to be actively deployed of their mining operations with low electrical energy charges, maximizing vitality. their computational energy at the moment. And as market exercise will increase, it should profit from using the processing energy of their older machines.
“The net result will be a significant improvement in inventory planning and supply chain optimization throughout the year and is unaffected by the Bitcoin price,” they mentioned.
Learn in regards to the firm Canaan
Canaan Inc. is a bitcoin mining {hardware} producer primarily based in Hangzhou, China. The firm was the second-largest designer and producer of Bitcoin miners globally when it comes to computing energy for the six months ending June 30, 2019, based on impartial market analysis agency Frost & Sullivan. During the identical interval, miners offered accounted for 21.9% of the full computing energy of all Bitcoin miners offered globally.
Canaan’s CEO, Nangeng Zhang, based the corporate in 2013. Together together with his workforce, he invented and distributed one of many first cryptocurrency miners to combine built-in circuit know-how ( ASIC) application-specific. The firm initially devoted its analysis and improvement efforts to ASIC purposes for Bitcoin mining and shortly constructed up its ASIC design know-how.
In addition to producing cryptocurrency mining gear, Canaan devotes appreciable assets to the analysis and improvement of synthetic intelligence (AI) chips.
In September 2018, Canaan grew to become the primary firm within the {industry} to supply business edge computing AI chips primarily based on the Risc-V structure, which is a set of directions that describes how software program connects to the Internet. related to an underlying processor and self-evolving neuron – the network accelerator.
The microchips Canaan designs are manufactured, packaged, and examined by industry-leading suppliers, together with TSMC, Samsung, STATS ChipPac, ASE, and SPIL.
Canaan not too long ago opened their first Overseas Service Center in Kazakhstan.
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