Crypto Miner Canaan Shares Sink 7% Despite Strong Q4

Crypto miner and manufacturer Canaan fell 6.9% on the Nasdaq on Tuesday despite reporting a 121.1% year-on-year increase in revenue to $196.3 million in the fourth quarter, driven by an increase in hardware sales and stronger mining performance.

Canaan reported that its Bitcoin (BTC) mining revenue rose 98.5% year-on-year to $30.4 million, helping boost its Bitcoin treasury to a record 1,750 BTC, valued at nearly $120 million, while the company also increased its Ether (ETH) holdings to 3,950 ETH, worth $7.9 million.

The revenue figure is Canaan’s highest quarterly posting in three years, and was also driven by Bitcoin mining machine sales, with the company shipping a record 14.6 exahashes per second (EH/s) of computing power during the quarter.

Canaan said computing power sales were supported by a “milestone order” from a US-based institutional miner, helping it set a new quarterly record for computing power sales and achieve a 60% year-on-year increase.

On the mining front, the Singapore-based company said it expanded its installed hashrate to 9.91 EH/s, with 7.65 EH/s operational during the quarter.

Bitcoin network hashrate has fallen from a record 1,150 EH/s in mid-October to 980 EH/s as miners continue to unplug unprofitable machines and pivot to AI and high-performance computing.

Despite the strong Q4 performance, Canaan (CAN) shares tanked another 6.87% to $0.56, Google Finance data shows, making it one of the lowest performers among the 15 largest Bitcoin miners by market cap.

Canaan’s risk of Nasdaq delisting worsens

At its current price of $0.56, the company is now down 18.1% year-to-date and 70.2% over the last 12 months.