Canaan shares rose in price by 10% after reporting multiple growth in revenue in the first quarter of 2021, driven by an increase in bitcoin mining. Overseas markets drove the growth.
Canaan reported a 538% increase in quarterly profit to $61.5 million. Gross profit reached $29.6 million with the gross margin of 48.2%. Adjusted net income of $21.9 million (adjusting for the one-off share-based compensation expense) compared to the loss reported in 2020.
The company's revenues from overseas markets increased to 78.4% of total revenue, compared to 4.9% a year earlier. The total sold computing power reached 2 million TH/s, up 122.2% year-on-year. The company ended the quarter with $204.2 million in cash and cash equivalents.
“Our financial performance improved significantly in the quarter, driven by the Bitcoin price rally, higher customer demand for quality mining machines, and our ability to ramp up mining machine production and deliveries. During the period, we improved our mining machine production yields and secured sufficient capacity for future production by forging tighter partnerships with key foundry partners and other suppliers,” said Chairman and Chief Executive Officer Nangeng Zhang.
Canaan held an IPO in 2019 on the Nasdaq exchange, becoming the first Chinese manufacturer of mining equipment, whose shares are publicly traded on the US-based stock exchange.