Latest news with #CanaanInc
Globe and Mail
27-05-2025
- Business
- Globe and Mail
Crypto Mining Stock Surges Following Share Repurchase Program Announcement
A Chinese company that operating in the digital blockchain computing and crypto mining industry is stealing the show so far during Tuesday's session after the company announced that its board of directors has authorized a share repurchase program under which the company may repurchase up to $30 million worth of outstanding ADSs and/or class A ordinary shares, over the next six months starting from May 27,2025, according to a press release. Traders rushed to scoop up shares of Canaan Inc. (Nasdaq:CAN) following the news, pushing the small cap up to $0.7301/share (+15.23%) at the early session high. This move could be the start of a potential breakout from the multi-month downtrend this stock has been stuck in since the end of last year. Canaan Inc is a developer of supercomputing chips and the manufacturer of digital blockchain computing equipment as well as the supplier of the overall scheme for computer software and hardware of digital blockchain. The equipment manufactured by Canaan is sold to many countries including China, the United States, Hong Kong, and other foreign countries. It derives a vast majority of the revenue from China. Its product includes Kanzhi Al and Avalon Mining Machine. Copyright © 2025 All rights reserved. Republication or redistribution of content is expressly prohibited without the prior written consent of shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. View more of this article on About Media, Inc.: Founded in 1999, is one of North America's leading platforms for micro-cap insights. Catering to both Canadian and U.S. markets, we provide a wealth of resources and expert content designed for everyone—from beginner investors to seasoned traders. is rapidly gaining recognition as a leading authority in the micro-cap space, with our insightful content prominently featured across numerous top-tier financial platforms, reaching a broad audience of investors and industry professionals. Want to showcase your company's story to a powerful network of investors? We can help you elevate your message and make a lasting impact. Contact us today. Contact: Media, Inc.
Yahoo
21-05-2025
- Business
- Yahoo
Canaan Inc (CAN) Q1 2025 Earnings Call Highlights: Record Revenue and Strategic Challenges
Total Revenue: $82.8 million, exceeding guidance of $75 million, up 136% year over year. Mining Revenue: $24 million, up 132% year over year, with 259 Bitcoins mined, a 33% increase year over year. Machine Sales Revenue: $58.3 million, up 149% year over year. Average Selling Price (ASP): $10.5 per terahertz per second, up 53% from the previous year. Gross Profit: $0.6 million, first positive gross profit in two years. Operating Expenses: Approximately $38 million, compared to $31 million in the same period last year. Cash Balance: Approximately $97 million at the end of Q1. Bitcoin Holdings: 1,408 Bitcoins as of March 31, with a fair market value of around $117 million. Projected Q2 Revenue: Approximately $100 million. Warning! GuruFocus has detected 4 Warning Signs with CAN. Release Date: May 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Canaan Inc (NASDAQ:CAN) achieved total revenues of USD82.8 million in Q1 2025, exceeding their previous guidance of USD75 million, marking a 136% year-over-year increase. The company saw a significant increase in the average selling price per terahertz, rising to USD10.5, representing a 30% growth. Canaan Inc (NASDAQ:CAN) reported a strong performance in its self-mining business, with 259 Bitcoins mined, up 39% quarter over quarter. The company successfully ramped up production and delivery of its A15 series mining machines, contributing to a 62.6% year-over-year increase in total computing power sold. Canaan Inc (NASDAQ:CAN) maintained a solid mining gross margin of 31% in Q1, supported by competitive electricity costs of 4.2 US cents per kilowatt hour. The global bitcoin mining industry faced macroeconomic challenges, including significant tariffs imposed by the US and China, leading to volatility in global markets. The US tariffs have led to higher mining costs and greater uncertainty for American miners, significantly suppressing demand for mining machines in the US market. Canaan Inc (NASDAQ:CAN) decided to withdraw its full-year revenue guidance and mining hash rate deployment targets for the first half of 2025 due to ongoing global political and economic volatility. The company faced a fair value loss in cryptocurrency assets of USD16.3 million due to a 12% decline in Bitcoin prices from the previous quarter. Canaan Inc (NASDAQ:CAN) experienced increased operating expenses, totaling approximately USD38 million, partly due to increased stock costs and R&D expenditures. Q: Can you describe the trends in your average selling price (ASP) for equipment during the quarter, especially as Bitcoin prices fluctuated? A: James Cheng, CFO: In Q1, our ASP climbed to $10.5 due to strong demand and positive feedback for our A15 series. Despite market sentiment being poor in April, our locked contract sales prices in April and May were higher than previous A15 series prices. We expect Q2's ASP to improve, but remain cautious about Q3 and Q4 due to US market uncertainties. Q: How are Bitcoin miners' strategies to use power for HPC or AI hosting affecting your total addressable market (TAM) for equipment? A: Nangeng Zhang, CEO: Some customers are redirecting power towards AI and HPC applications, but these efforts seem more experimental than strategic solutions to underlying challenges. Q: Can you provide more clarity about your expansion plans for self-mining, especially given the US tariff situation? A: Nangeng Zhang, CEO: Despite US tariffs, our North American self-mining projects are progressing, with new capacity installed in Pennsylvania and Texas. We maintain competitive power costs and are exploring global expansion opportunities, particularly in regions like Ethiopia, where we have achieved high machine uptime. Q: Has the ninety-day tariff truce resulted in an increase in rig orders for May versus April? A: Nangeng Zhang, CEO: The US tariffs have increased costs for imported mining machines and infrastructure, affecting US miners. While global hash rate growth has been moderate, creating opportunities outside the US, we haven't seen improvements in US sales. However, non-US regions have shown order volumes equal to Q1. Q: What is your strategy regarding ASIC manufacturing in response to heightened tariffs? A: Nangeng Zhang, CEO: We have started small-scale trial production in the US, but manufacturing there is complex and costly. Our goal is to limit cost increases to 15-20% compared to Malaysia. The decision to expand US manufacturing depends on demand and tariff stability. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Q1 2025 Canaan Inc Earnings Call
Gwyn Lauber; Director, Investor Relations; Canaan Inc Nangeng Zhang; Chairman of the Board, Chief Executive Officer; Canaan Inc James Cheng; Chief Financial Officer; Canaan Inc Kevin Cassidy; Analyst; Rosenblatt Securities, Inc. Michael Donovan; Analyst; H.C. Wainwright & Co., LLC Mike Grendel Bill Papanastasiou; Analyst; Keefe, Bruyette & Woods North America Nick Giles; Analyst; B. Riley Securities Joe Flynn; Analyst; Compass Point Research & Trading, LLC Operator Ladies and gentlemen, thank you for standing by, and welcome to Canaan Inc's first quarter 2025 earnings conference call. (Operator Instructions) Please note that this event is being recorded. Now, I'd like to hand the conference over to your speaker today, Ms. Gwyn Lauber, Investor Relations director of the company. Please go ahead, Gwen. Gwyn Lauber Thank you, operator. Hello, everyone, and welcome to our earnings conference call. Joining us today are Chairman and CEO, Nangeng Zhang; and our CFO, Jin James Cheng; Liang Wang, Vice President of Capital Markets and Corporate Development, and Yixuan Zhang, Senior IR manager, will also be available during the question and answer session. Our CEO will start the call by providing an overview of the company and performance highlights for the quarter. Our CFO will then provide details on the company's operating and financial results for the period before we open up the call for your questions. Before I begin, I would like to refer you to our safe harbor statement in our earnings press release. Today's call will include forward-looking statements. These statements include but are not limited to our outlook for the company and statements that estimate or project future operating results and the performance of the company. These statements speak only as of today, and the company assumes no obligation to revise any forward-looking statements that may be made in today's press release, call, or webcast, except as required by law. These statements do not guarantee future performance and are subject to risks, uncertainties, and assumptions. Please refer to the press release and the risk factors and documents we file with the Securities and Exchange Commission, including our most recent report on FORM 20S for information on risks, uncertainties, and assumptions that may cause actual results to differ materially from those set forth in such statements. In addition, during today's call, we will discuss both GAAP financial measures and certain non-GAAP financial measures which we believe are useful as supplemental measures of the company's performance. These non-GAAP measures should be considered in addition to and not as a substitute for or an isolation from GAAP results. You can find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP results in our earnings press release, which is posted on the company's website. And finally, please note that during the call, all dollar amounts refer to US dollars. With that, I will now turn the call over to our Chairman and CEO, NG Zhang. Please go ahead. Nangeng Zhang Thank you, great. Hello, everyone. This is AG, the CEO of Canaan. Thank you for joining our conference call. Our CFO James and I are pleased to share our first quarter 2025 results and the recent developments from our headquarters in Singapore. In the first quarter of 2025, the global bitcoin mining industry faced a serious macroeconomic challenges. In February 1, the US President signed an order under the International Emergency Economic Powers Act (IEEPA), imposing a 10% tariff on goods imported from China. This tariff was rise to 30% in early March. Then in April, the US further announced a 10% universal tariff on imports from all countries, along with higher re reciprocal tariffs, targeting selected nations with tariffs on Chinese goods reaching as high as 145%. In response, China imposed up to 125% tariffs on US schools, and introduced non-tariff measures including export controls. These developments caused major volatility in global markets. As a result, the bitcoin price dropped sharply from about [USD100 and USD4000] at the end of January to USD76,000 in early March. Before slightly rebounding to around USD85,000 in late March. Despite the shock price swings, the total network has rate rose from 795 MHz per second to 856 extra has per second. This combination of falling Bitcoin price and the rising hash rate significantly compressed minus profit margins. Entering the second quarter, the bitcoin price dropped again to USD74,000 in early April, but gradually recovered. The date of our earnings conference, it has risen back about USD100,000, gradually reflecting Bitcoin's value as a safe haven asset. We have seen clear signs of recovery in global demand for many machines except in US market. Due to the 10% universal tariffs, import imposed by the US on imported goods and even higher, reciprocal tariffs on some countries. Both Kenya and our competitors now face at least 10% extra duty when shipping money machines, made in Southeast Asia to the US in addition. Faster changing policies have created a great deal of uncertainty and confusion in actual custom operations. In some cases, the effective tariff rate has been even higher than 10% and the customs enforcement standards and the clearance times have been in constant. Since the value of bitcoin is globally unified, this has led to higher mining costs and the greater uncertainty of, for American miners compared to miners in other regions, which has significantly surpassed, mining machines demand in US. We have observed that many US listed mining companies are adjusting their business models and accelerating their transformation, towards AI and the high performance computing businesses. Aimed, complex and rapidly changing market environment, our team still delivered a solid operational performance. In the first quarter, we achieved total revenues of USD82.8 million, exceeding our previous guidance of USD75 million. This represents 136% year over year increase and demonstrates our strong execution and resilience across global markets. The first quarter of 2025 is traditionally a slow season. However, thanks to the continued large-scale delivery of our A15 series mining machines, we achieved 5.5 X per second, in total computing powers so, during the quarter, up 62.6% year over year with sales revenue exceeding USD58 million. This includes ongoing deliveries of large pre-sale orders to public mining companies such as [Hi]. With the new generation high performance A1 models, becoming the main driver of shipments. Our average selling price per hatch significantly increased to USD10.5 US dollars, representing a 30% share growth. And in overseas markets outside of North America, we are seeing continued growth in demand from regions such as Asia, South America and Africa. We have made tangible sales progress in these areas. Our Avalon Home Series of mining machines for individual consumers also achieved encouraging progress in Q1. Following the launch of several new models in this quarter, we generated USD1.3 million in sales revenue and delivered around 6,000 units. In spite of summer approaching in, northern hemisphere leading to a, gradual decline in indoor heating demand, our Avalon Home Series which features feel functionality of mining and home heating still sells well. This well beyond our expectations. We have ramping up production to ensure timely delivery. As of May 18, 2025, we have sold a total of over 17.6 Southern Units year-to-date, with total order value reaching over USD6.6 million. Our self-mining business delivered a strong results this quarter with a total of 259 Bitcoins mined, up 39% quarter over quarter. This was mainly driven by the continued growth of our energized has rate and the optimization of several project partnerships. Our operational computing power increased from 4.75 X per second at the end of 2024 to 5.97 X per second by the end of March 2025. Coupled with higher average business price during the quarter, our monthly revenue reached a record high of over USD24 million, marking 59% screen share increase. Thanks to our competitive electricity cost of 4.2 US cents per kilowatt hour, we maintained a solid mining growth margin of 31% in Q1. By the end of the quarter, the number of bitcoin owned by the company reached 1,408, setting a new record. We continue to steadily deploy more heart rates and by the end of April, our total deployed computing power reached 8.15 X per second. Notably in the US, we fully deployed 3XH per second across four products. Alongside the mass production and the delivery of our a A15 series, we have continued to work closely with our founding partners on technical optimization. As a result, chip yield now exists 90%, compared to the initial launch last year, overall machine performance of a A15 series has improved by 15%, while power consumption has been reduced by 10%, effectively lowering the cost per unit of mining computing power. We have also introduced more advanced products across various cooling technologies, including hydro and the emergent cooling. One recent example is our new A1566 HA hydrocooling model, which delivers close to 500 terahertz per unit and the better energy efficiency than the air-cooled machine, an outstanding product in the industry. Looking ahead, our next generation A16 series has successfully completed takeout in the first quarter. The corresponding products will be officially launched after full machine testing, and they are expected to deliver a significant performance upgrade. On the production and the logistic front, our diver diversified geographic deployment over the past few years, especially the establishment of manufacturing capacity in Southeast Asia, has helped, pushing the impact of recent US tariff adjustments. Starting at the end of Q1, we set up a pilot production line in the United States and successfully completed trial production. This means our US based manufacturing progress is now essentially up and running. While the current production cost in US is relatively high, we believe taking this step holds strategy, strategic value. It allows us to be closer to US market and our customers while also reducing supply chain rates. We are now actively exploring the possibility of building a larger scale manufacturing facility in the US, and identifying ways to significantly lower production costs, aiming to make US-based manufacturing commercially viable. This quarter we mentioned, we maintained stability in our operations with key indicators showing further improvement. Supported by higher ASP and the continued growth in our mining operations, we achieved positive growth profit for the first time since the bear market began nearly two years ago. While focusing on R&D investment, we also continue to enforce this plant expense control in our daily operations. As a result, our general and administrative expenses decreased by 39% quarter to quarter. This narrow our operation operating loss by 32% quarter and by 45% year over year. To $37.6 million US dollars. Although Bitcoin price declined by approximately 12% from the end of previous quarter, lead to a fair value loss in cryptocurrency assets of $16.3 million US dollars. We remain committed to our Bitcoin holding strategy. We, as we strongly believe in the long term, appreciation potential of the asset. We are also pleased to see that as of today, Bitcoin has returned to about $100,000 US dollars level. On the balance sheet side, with the large scale production of our A15 series underway, we have started to build up some inventory of new products to ensure, uninterrupted, deliveries. For the end of March, the company maintained a healthy cash balance of approximately $100 million US dollars. In addition, we took advantage of the price pullback in Bitcoin during the first quarter, to further strengthen our holdings. We purchased 27.46 Bitcoins at an average price of 83. $6000 US dollars for Bitcoin. At the end of April 2025, the total number of Bitcoins held by the company reached 1,424. Looking ahead to the coming quarter of 2025, we are actively adjusting our focus across key markets and, stepping up our sales efforts. As of now, we have secured a solid pipeline of a 15 orders. With delivery booked in June, into June. We are also continuously creating our production capacity between self-money and fulfilling customer orders based on involving market demand. That said, the new series of, US tariff measures introduced in the first quarter, and is still ongoing. Have brought considerable risk and uncertainty. So far, demand from North American customers remains under pressure with no clear sign of recovery. In the capital markets, uncertainty has also impacted the stock performance and fundraising activities for many US listed mining companies. As a result, customers in the US have generally adopt a weak and see attitude towards, orders. We have observed delays and adjustments in some orders currently under negotiation. And in delivery schedules. Additionally, certain drug mining products have faced increased cost due to import tariffs, which could delay the pace of hash rate deployment. Given the ongoing volatility in the global political and economic landscape, the company has decided to withdraw its previously issued full year revenue guidance as well as the mining hash rate deployment targets for the first half of 2025. Until there's a greater clarity in the overall environment, we will focus on pivoting to re respond to market fluctuations. To further, insulated our business, from the current uncertainty, we are actively shooting our self-mining strategy to pure global expansion opportunities that align with our long-term growth objectives. We are confident in our ability to identify and collaborate with experienced partners both within and beyond North America, enabling our app to scale efficient, effectively and maintain operational, excellence across diverse markets. Our track record of success outside the United States include our operations in Ethiopia, where we recently reported an impressive average uptime of 98% during the first quarter and 95% uptime in April, despite minor power disrupts early in this month. These results reflect our team's ability to navigate local challenges while maintaining high performance and real ability. In the near term, the company is adopting a more cautious approach to expectations for the second quarter of 2025. We currently anticipate revenues of approximately USD100 million for Q2. This forecast is based on the current market and operational conditions. However, given recent policy alternatives and the market volatility, actual results may differ from this expectations. In response to recent market developments, including the US tariff measures on our share price, we believe that our current stock valuation is significantly below, company's intrinsic value and the long-term growth potential. To address this disconnect and enhance shareholder value, we are actively evaluating a range of strategic interactives including a potential share repurchase program. These interactives are currently under review and may be subject to approval by our Board of Directors. Any implementation will be conducted in full compliance with all applicable laws and the regulations. We will keep the market informed of any material developments through subsequent announcements. Avalon's complex and rapidly involving macro and the industry environment, we remain focused on technology and product innovation, strengthening customer service and advancing our global strategy as we prepare to embrace more opportunities and the challenges ahead. This concludes my prepared remarks. Thank you, everyone. I will now turn the call over to our CFO James. Thank you. James Cheng Thank you, NG and good day everyone. This is James, CFO Canaan. I'm very glad to share our quarter-one financial results with you today. As NG stated at the start of the call in quarter one, especially February and March, the bitcoin mining industry faced the challenges as minors profit margins was squeezed by the bitcoin price volatility and the higher total network cash rate. Despite volatile market conditions, we delivered a solid performance results. Let me give a quick summary of our financial performance. First, driven by the growth in the computing power sold and average selling price, total revenue reached $82.8 million exceeding our $75 million revenue guidance and up 136% year over year. Second, our mining operations grew steadily, fueled by the combined growth in the deployed mining capacity and average bitcoin price in the first quarter. Our mining revenue reached $24 million up 132% year over year, with 259 Bitcoins mined, up 33% year over year. Next, due to product iteration and mass delivery of the A15 series, our average selling price rose to $10.5 per car per second in the quarter, resulting in a return to gross profit. It's the first time in two years amid the bear market. Last but not least, our cash balance remained flat sequentially. We continued to manage cash in a prudent way and streamline our expenses to make sure strategic items are prioritized. Turning to our profit and loss for the quarter, total revenue was $82.8 million, beating the guidance by $8 million. Mining revenue contributed $24 million, increasing 132% year over year. We mined 259 Bitcoins in the quarter, a year over year increase of 33%. This increase was primarily driven by more computing power installed at our mining sites, which reached 6.6 ex per second at the end of the quarter, increasing 22% from the end of last year. Now turning to product revenue, revenue from machine sales was $58.3 million, an increase of 149% year over year. We delivered a total computing power sold of 5.5 million terahertz per second, representing a year over year increase of 63%. The first quarter of each year is typically our seasonally lower quarter due to the impact of the new year and the Lunar New Year holidays. However, the mass delivery of A15 series in this quarter drove the major year over year growth in both mining machine sales revenue and the computing power sold. More than 19,000 A15 mining rigs were delivered in quarter one, contributing $45 million to the mining machine sales revenue and a 3.9 million terahertz per second to the computing power sold. In addition, driven by the mass delivery of our A15 series, the average selling price, or we call ASP rose to $10.5 per terahertz per second, up 53% from $6.9 per terahertz per second in the same quarter of 2024. Turning to the revenue from our Avalon Home series, in quarter one, we delivered approximately 6,000 units of our Avalon Home products, contributing revenue of $1.3 million. From the beginning of 2025 to date, we have already received orders for more than 176,006,000 units of Avalon Home products with the total amount of $6.6 million. As I mentioned earlier, due to the product iteration upgrades and the higher A15 delivery volume, gross profits turned positive, reaching at $0.6 million in the quarter, the first time since the start of market downturn two years ago. Turning to the expenses, our operating expenses total approximately $38 million, compared to $31 million in the same period of last year. Please note $2.4 million of disposal gain on our self-mining rates was recorded in the first quarter of last year, which correspondingly offset the overall operating expenses. Excluding this non-routine impact, the operating expenses increased $5.7 million year over year, mainly due to the increased stock cost and R&D expenditures, including the staff we added for the development of our consumer level mining products and the mining solutions. By the end of this quarter, the price of bitcoin decreased to around $83,000 versus around $95,000 by the end of 2024. The decrease in the bitcoin price on the last day of the quarter resulted in an aggregate unrealized fair value loss on crypto assets of $16 million. Encouragingly, the recent appreciation of bitcoin price has reversed this unrealized losses. In total, we recognized and adjusted if it had loss of $38 million, narrowed 47% year over year. In March 2025, we issued $100,000 CRA/1 preferred shares with the gross proceeds of $100 million. Additionally, the third trench of the Series A preferred shares issued in quarter 3, 2024 was still recognized as a convertible liability at fair value by the quarter end. This financing incurred an excess of fair value over proceeds, received and fair value changes. This non-cash accounting treatments hit our Q1 bottom line for total $33 million. In order to represent our performance more accurately and more comparably, we excluded that impact of this accounting treatments from our non-GAAP measures. Turning to our balance sheet and cash flow, at the end of quarter one, we held a cash of $97 million on our balance sheet, remaining stable compared to the end of quarter four. In quarter one, we generated a $51 million of cash inflow from sales, received the $21 million from secured loans and $18 million from export VAT refunds and we paid $88 million for production and operation. We also paid $144 million to secure our waiver supply, primarily funded by the proceeds of $100 million from preferred shares financing and $42 million from ATM financing. Now turning to our bitcoin assets. Bitcoins held as our own holding assets increased in the quarter, reaching a record high of 1,4008 Bitcoins as of March 31. This is 115 coins more than 1293 coins at the end of last quarter. On March 31, 2025, the fair market value of our own Bitcoins totaled around $117 million, and our hold gain was approximately $49 million higher than the original value of the Bitcoins that we gained from mining or other operations. With the Bitcoin price rebounding to over $100,000 the current market value of this crypto assets stands at approximately $147 million. As of April 30, our total bitcoin holdings increased to 1424 as already disclosed. Turning to fund raising, as mentioned earlier, in March 2025, we closed the series A/1 preferred shares financing with the gross proceeds of $100 million. From the end of 2024 to February 19, 2025, we utilize the ATM for fund raising with net proceeds of $42.5 million. This financing have been reported in the previous quarterly release. After that, we have not done any fundraising. We have also mutually agreed with the investor to terminate the agreement for the second tranche of Series A/1 preferred shares of another $100 million effective April 30, 2025. As NG mentioned, the recent market dynamics, including US tariff hikes have seriously impacted our stock price. We believe our current stock price is undervalued and disconnect from the long-term growth potential. We are actively evaluating strategic initiatives, including a potential share repurchase program to enhance our shareholder value. We will promptly disclose relevant material developments in subsequent announcements. By the end of quarter one, 900 Bitcoins were pledged for the secured loans with an aggregate carrying value of $45 million which we believe is in a reasonable interest level, and 100 Bitcoins were transferred into a fixed term product with a guaranteed minimum annual return. The secure loans enable additional liquidity, which we will use to fund our production expansion and operations. In the future, as part of our whole strategy, we will explore more ways to increase capital liquidity through our own crypto assets. Please note that the Bitcoins pledged or transferred into fixed term products are as cryptocurrency receivables in our balance sheet and the classification between current and non-current assets is consistent with the periods of corresponding secured loans or fixed term products. Given the prevailing weight and see sentiment among North American customers, and the postponements in our mining project deployment caused by the significant uncertainties around surrounding tariffs, we cautiously expect the revenue for the second quarter to be approximately $100 million. This concludes our prepared remarks. We are now open for questions. Operator (Operator Instructions) Kevin Cassidy, Rosenblatt Securities, Inc. Kevin Cassidy Yes, thanks for taking my question. Congratulations on the good results, considering the market. I wonder considering the market, if you could give a description of what happened with your ASP, what the equipment pricing trends were through the quarter as Bitcoin prices went down, do your ASP per terahertz has come down with that, or do they hold up and if you can you give an idea of what to expect in the second quarter? James Cheng Yeah. Thank you, Kevin. I think, from ASP perspective, in quarter one, we have already seen the, ASP climbing up to $10.5. I think there's several reasons behind it to support that. One thing is the market sentiment in early quarter, especially January and early February, was quite good. The demand was very strong. And the second reason behind that is our A15 series got very good feedback from the early-stage customers in quarter four. Then, a lot of customers ordered in quarter one and we have to identify the orders' urgency, doing some, price raising during that time. So, I think, that, that's in the early stage of quarter one. And also, we still have some clearance on the older generation products like A14 in quarter one that makes the quarter one's average price still lower than $11 which give us some room in quarter two to further develop our average selling price. Even, I think in April, the market sentiment was not good, but our locked contract sales price in April and May, still higher than previous selling price of A15 series, and we don't have much A14 inventory in quarter two. That makes the average selling price continue to have a chance to improve in quarter two. Until now I have no final numbers for quarter two, but I'm very optimistic about the quarter two average selling price development. But from a long term perspective, looking at quarter three and quarter four, now, if the US market demand is so under pressure because people are still waiting to see the tariffs surrounding all kinds of policies, I don't think that we have a clear answer about quarter three and a quarter four market demand, especially for the United States, the leading country. So, with that assumption, I could only be cautious about the future development of average selling price. I should say, it could be flat with quarter two or even a little bit lower if the Bitcoin price is not higher in quarter three. But currently, I think the quarter two's average selling price could be better. That's something we have already, have some confidence. Does that answer your question, Kevin? Kevin Cassidy Yes, I made it very clear. Thank you, James. And maybe just a follow up to that, a lot of Bitcoin miners have employed a strategy to use their access to power for HPC or AI hosting. How is this changing your [TAM] for your equipment? Nangeng Zhang Hi, Ken. This is NG. I think I can. I will answer this question short. I believe you are correct. Some customers have redirected their power towards the emerging AI and HPC applications. However, in my view, these efforts appear more like experimental quick fix than strategic solutions, to the underlying changes, the challenges. This is my, personal, view, yeah. Thank you. Operator Michael Donovan, HCW Michael Donovan Hi NG and James. Thank you for taking my question. This is Michael Donovan, on the call for Kevin DD. Now, I understand you're not offering guidance for the full year for 2025 but can have more clarity about expansion plans for self-mining? Nangeng Zhang Yeah. I think before the US tariff policies was implemented; we have already shipped A batch of mining machines to US for money. So our North American soft mining projects, is still moving forward in quarter one, two. In April long, we had over 1.5 access of new installed capacity, through our partnerships with Lunar Square and the Mawson hosting in Pennsylvania and Texas. With this, our total deployed, global hash rate reached 8.15 x/ 6.2 x per second actively running. We managed to maintain, com competitive owing power cost, of just $0.04 for our, across our manual operations, which shows the effectiveness of our focus on high quality partnerships and our long-term global, deployment strategy. Because the situation in the US, I think, outside North America, our projects, our products, outside, North America shows strategic value. In Ethiopia, we, our joint mining, operations help us avoid, geo-productive and regulatory uncertainty, while extending the equipment's life cycle and leveraging low cost-efficient local power. In Q1, the local project achieved a strong, 98% machine up time. Even though there is a small scale power disruption in early April, our partner responded quickly and the up time for the month still reached the 95%. It's above the industry average. Looking ahead, I think we will continue to stay at HO globally, optimizing our partnership models and technical developments, the deployment. We are actively reviewing our op options for skill up, existing projects and, talking with, new sites developments. Thank you. Michael Donovan Thank you, Nangeng. That's helpful. I want to follow up. I know it may be too early to tell but has the ninety-day tariff truce resulted in an increase in rig orders for May versus April? Nangeng Zhang Yeah, I think for the tariff stuff. Yeah, I think the US raised import tariffs by at least 10% across most major economics. This affects US miners. I think it's in the two key ways. First, the tariffs at least 10%, to the cost of import --imported mining machines. This applies not just to us, but also to all of our peers in the industry. Second is, there's also add tariffs to power-related infrastructure and other equipment needed for building money farms. So for us, there are two impacts. First is the higher import cost is going down purchase from US customers. Second is, some of our own planned mining deployments in the US have been delayed due to the increased import cost. Because Bitcoin doesn't carry a median label, so with Bitcoin price, once again breaks through USD100,000 recently. And with slow, deployment progress in US, the global hash rate growth has been more, moderate in Q2. So that created opportunities for miners outside the US, especially in regions with energy cost advantages to expand and earn more, many rewards. So what we are doing is to actively using our global sales network to capture these kinds of opportunities, and the close modules. At the same time, we have already built a solid mining presence outside the US, and we are now evaluating expansions and exploring new projects, partnerships outside the US. So this allows us to flexibility to allocate many machines between sales and our own mining projects, depending the market conditions. Yeah. James Cheng Yeah, my $0.02 here, Michael. I think, April, the sentiment was very bad, from the market, from the customers. In May, when Bitcoin price climbed back, people's sentiment will be better. But in the reality perspective, it's all 10%. This 10% will be a kind of solid included extra cost, no matter from the infrastructure perspective or machine perspective, be prepared by the miners, which makes the US miners a little bit less competitive compared to the rest of the world. So that's something we cannot ignore in current stage, but let's see how it goes after 90 days closed, then we can know an answer after that what kind of tariff on Southeast Asia, including Malaysia, Thailand, and in certain cases, other countries in Southeast Asia, just my $0.02. Nangeng Zhang I think there's another on this question. From the current operation data, we are roughly in the middle of Q2, right? The number of orders we have locked in non-US regions is basically equal to the volume of the entire Q1 non-US regions orders. So, from a practical point of view, cells in other regions are indeedly linked to the recovery of the Bitcoin price. However, US region, we have not seen any improvements in sales, yeah. For your reference. James Cheng Thank You. Operator Mike Grendel, Northam. Mike Grendel Hey guys. Thanks a lot. Could you give us some insight into what you would need to see how much lead time you need for orders for 3Q or 4Q to be better than 2Q? Nangeng Zhang Sorry, you are asking about the machine the times or machine sales time, right? Okay, yeah, I think, yeah, I think it's --we start the mass production of our A15 in second half last year, and during that time, I think most of the customers has -- it's a little bit suffering. I think it's about three to five months for the lead time but currently, we are building up some inventories. So, if you order today, I think our pipeline is about, it's about, you can expect it to get the machines in June. So that's about six to eight weeks, the time, it's much better. And we, I think, for the lead time issue, it's about the demand and the supply. If everything goes well, I think, we can expect that the lead time is between one and two months. Mike Grendel Got it. And in terms of CapEx the rest of the year, what's a good range for your committed CapEx, or even growth CapEx the rest of the year? James Cheng Mike, I can answer this question, by two ways of, spending. The first way is, we have to build up our wafer supply part. This can be considered also as a kind of inventory and also can be considered as a kind of CapEx in machine sales business. The other side, we also do our self-mining operation. In that side, the only CapEx we invest in current business model, is the machine. So overall speaking, all the CapEx is related to machine, wafer supply, wafer preparing, putting this together, I think, we have already built up a kind of inventory for quarter two and quarter three. We just mentioned the cash spending in quarter one, was like $144 million for waiver. And I can tell you, in quarter two, we continuously invest in this part. So, for the four-year perspective, it will be adjusted according to the demand and supply. It's a kind of a rolling forecast process. For every six months, we have to monitor the market demand and then place orders from the waiver, supplier and also, manage our cash flow. So, in terms of the full year now, I don't have a quick answer to you, but, what I can say for overall waiver supply perspective, it can be like a bit between $400 beyond the 400 million, something even above that it's not only CapEx for self-mining, but also the way for preparation for the whole machine sales part. And to be very honest, it is closely linked to the four year revenue because all the waivers can turn into machine sales revenue or self-mining revenue eventually. So, we didn't provide the four-year guidance, we still need to monitor the status of the tariff and other policies. So with that assumption, currently, I don't have a fixed answer for this total CapEx spending, but to be very honest, it will be higher than $400 million in year 2025. That's something in my mind. I don't know if I answer your question, Mike. Operator Bill Papanastasiou, KBW. Bill Papanastasiou Good morning and thanks for taking my questions. Just a quick one for me and apologies if it was already touched upon. Acknowledging that the tariff landscape has brought significant uncertainty, just curious as part of your evaluations with respect to ASIC manufacturing, is there any capacity to shift a portion of your manufacturing to the United States to limit the impact of heightened terrorists. What does management think the best option is here? Nangeng Zhang Wow. Thank you James Cheng You for, yeah. That's a difficult question. Nangeng Zhang Let me see. Yeah, yes, we, I think we have. Yeah, I think we just mentioned that we already deployed for since late Q1, we have started a small scale trial production in the US. The process works, but manufacturing in the US, that doesn't means everything from like from refining sand to build the first aluminum to heat things and like orange, orange to machine cheeses. It's all done in the US in practice. Its extremely, I think during our operation, we found out that extremely, it's extremely complicated to do proper tariff planning for all imported materials. I think we already manufactured the PCBs, and do the SMT solding inside the US. And also, the policy environment is changing almost every day. It's very costly. So our internal goal, I think that the numbers today, we got is have no sense, it's absolutely nonsense but our internal goal is to limit, the overall cost increase of US based production to no more than, around like 15% to 20%, compared to like meeting Malaysia. Yeah. We are working harder to reach that topic. I think the schedule will not early than the tariff staff, get stabilized. James Cheng Yeah, adding some colors to this question is, it's all about cost, reductions and it's all about economics of this thing. If the demand is not going up from the United States, then, it will be a painful process if we build up a factory there and our customers, they didn't order a lot, then it will create problems for us. I think, on the other hand, if the tariff thing has been solved, with some good results from Southeast Asia, then we don't necessarily to build up the factory manufacturing in the United States. So, it's a kind of dilemma. It's all about demand and supply. So, if our customers would like to have us made in USA for these machines and also our cost structure can cover as NG said, less than 15% to 20%, higher than Malaysia, then we should consider doing manufacturing in the United States. But if US market demand is not that high, for us, it's difficult to amortize the cost into every single unit of machine. Then we don't do that. So it's kind of quite uncertain yet, but our supply chain is the best team inside the company. They would like to do some pilot around which is very successful, but I think in the future, it still depends on the economics, calculated together inside of the company. Bill, I don't know if we answer your questions. Yeah, I think so. Thank you, Bill. Operator Nick Giles, B. Riley Securities Nick Giles I thank you operator. Hi NG and James. Just wanted to go back to how you're thinking about site acquisitions, whether or not the tariff landscape is really increasing your desire to add more sites in the US, and whether it's increasing your desire to pursue, HPC or AI kind of where do you stand there. Thank you very much. James Cheng Thank you, Nick. Nangeng Zhang So far, I think the all the sites and the sites we are involved in, we haven't seen major changes in energy prices. Things have remained quite stable. Looking ahead, I am quite optimistic. Policy changes in US may unlock more energy supplies in the future, which could improve the outlook for power, availability, over the long term. Yeah, thank you. Operator Joe Flynn, Compass Point Research & Trading, LLC Joe Flynn I, just based on that comment, regarding like kind of CapEx I spend over $4 million for ultimately just kind of wait for cost. I was curious, like, what the uncertain kind of macro environment in the low you mentioned US customers who like we're receiving strong pricing ultimately exchange for, the ability to secure higher volumes of wafers. Have you looked, how do you, I guess like think about those relative to each other going forward because based on those numbers seems like you know you're still buying your allotment that's like more due to be to take or pay or already paid the deposit and other color that would be helpful. Nangeng Zhang I think you're asking about the wafer about the wafers or the our supply chain site. Joe Flynn Yeah, like, so yeah, I mean, how you, how can you guys justify your continuing to spend $40 million in the waivers if ultimate your strategy going into this year was to increase your demand in the US exchange for pre-payments. Nangeng Zhang Yeah, I understand. I think we continue to maintain strong and long-term partnerships with our profound partners. At present, I think the capacity is still manageable, and we are locking in production capacity, through pre-payments. I think, as I mentioned earlier, our current, wafer in progress, is sufficient to support our production through Q3. Given the recent sales slowdown, then expected in the beginning of this year, I think the inventory could actually carry us to Q4. This is also helped by our process optimization efforts. That means we can get more hash rate from a certain number of wafers. We are watching the market very closely. In my view, if the US tariff policies, not go away, everyone believes it is stabilized, then, and the market expectations become clear, I think the US market will recover, and, if the market comes back, the Bitcoin price is another historical high. It's very possible if you in a few months, I think the capital market, financing channels will open to our customers. So, there is a real chance that the money machine supply could quickly fall short of demand. And we can if we observe that kind of smell, we will put more orders to our foundry partners, and I think they have capacities for the end of this year. Yeah, thank you. Operator Thank you. As there are no further questions, I'd like to turn the call back to Gwyn Lauber for any closing remarks. Gwyn Lauber Thanks everyone for joining us today. If you have any further questions, please feel free to reach out to us to the contact information on our website. Thanks very much, everyone. Operator Thank you. That concludes the call today. Thank you everyone for attending. You may now disconnect. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
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- Yahoo
Canaan: Q1 Earnings Snapshot
SINGAPORE (AP) — SINGAPORE (AP) — Canaan Inc. (CAN) on Tuesday reported a loss of $86.4 million in its first quarter. On a per-share basis, the Singapore-based company said it had a loss of 27 cents. The cryptocurrency-mining computer maker posted revenue of $82.8 million in the period. For the current quarter ending in June, Canaan said it expects revenue in the range of $100 million. The company's shares closed at 82 cents. A year ago, they were trading at $1.05. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on CAN at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
San Francisco Chronicle
20-05-2025
- Business
- San Francisco Chronicle
Canaan: Q1 Earnings Snapshot
SINGAPORE (AP) — SINGAPORE (AP) — Canaan Inc. (CAN) on Tuesday reported a loss of $86.4 million in its first quarter. On a per-share basis, the Singapore-based company said it had a loss of 27 cents. The cryptocurrency-mining computer maker posted revenue of $82.8 million in the period. For the current quarter ending in June, Canaan said it expects revenue in the range of $100 million. _____
