Canaan Misses Q2 Revenue As Bitcoin Price Slump, COVID Lockdown Weigh On The Business

Canaan Inc CAN reported second-quarter FY22 revenue growth of 52.8% year-on-year to $246.7 million, missing the consensus of $257.7 million. Earnings per ADS were $0.53, beating the consensus of $0.35.
Total computing power sold decreased 7.7% Y/Y to 5.5 million Thash/s.
Canaan held $394.2 million in cash and equivalents.
Canaan held a total of 346.84 bitcoins on its balance sheet as of June 30.
Chair and CEO Nangeng Zhang commented, "We went through a challenging second quarter as the Bitcoin price continued to tumble down to under US$20 thousand. The COVID-19 containment lockdown in key cities in China also brought severe disruptions to our daily operations and demand for our AI chips."
Outlook: Canaan sees Q3 revenue of $134.4 million - $164.2 million, down 17% - 32% Y/Y.
Price Action: CAN shares traded higher by 4.6% at $4.10 in the premarket on the last check Thursday.