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Bitcoin Mining Rig Maker Canaan Surges After Strong Results and Guidance

The combination of an expanding customer base and higher average selling price drove the better-than-expected quarter.Read MoreFeedzy

Hangzhou-based Canaan, one of the industry’s largest manufacturers of crypto mining machines, is up 16% in premarket action after reporting a 60% increase in revenue to $342.8M in the fourth quarter.

The company had previously guided for sequential revenue to rise in the 35-50% range.

“The higher-than-expected topline result was powered by our business development efforts, which drove the growth of our customer base, enabling us to achieve a larger proportion of spot sales with a higher averaging selling price,” said CFO Jin Cheng.

The company’s total computing power sold was 7.7 million TH/s in the fourth quarter, up about 15% from 6.7 million TH/s previously..

Canaan expects its total net revenues for the first quarter of 2022 to be higher by 275-300% year-over-year to RMB1,500 million-RMB1,600 million.

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