In a 2020 financial results release, bitcoin mining rig manufacturer Canaan laid out a case for major profit growth in 2021.
Canaan, a Bitcoin mining equipment manufacturer, has released its unaudited 2020 financial results, including an estimate of $5.9 million in total net revenue for the fourth quarter of last year and total net revenue of $68.6 million across 2020.
And the company went on to say that it expects its total net revenue in the first quarter of 2021 to nearly match that of the previous year as a whole.
“As the price of bitcoin started to move up in the fourth quarter of 2020, the company believes that its revenue will be substantially improved in 2021 and expects that its total net revenues in the first quarter of 2021 will be not less than RMB400.0 million [about $61 million],” per the release.
Canaan also noted that it sold 6.6 million terahashes per second (Th/s) in computing power, down by 37.1 percent from 2019’s 10.5 million Th/s. Still, based on the rise in value of bitcoin and growth of the bitcoin mining industry across the last year, Canaan has reason for optimism in 2021.
According to data from Blockchain.com, miner revenue has reached above $60 million at certain points this year, up from highs around $27 million in 2020.
“Although the outbreak of COVID-19 caused supply chain disruptions and thus negatively impacted our revenues in the fourth quarter of 2020, our market leadership has enabled us to attain $174 million of contracted orders with $66 million of cash advance from customers as of December 31, 2020, thus laying a solid foundation for substantial revenue growth in 2021,” Naneng Zhang, CEO of Canaan, said, per the release.