The firm's ASIC orders have increased while pricing decreased, leading to an overall negative revenue growth.
Despite an ongoing crypto bull market, it appears that demand for Bitcoin application-specific integrated circuit (ASIC) miners and servers has been lukewarm.
On Feb. 27, Bitcoin ASIC manufacturer Canaan reported Q4 2023 earnings. In its report, the company disclosed revenue of $49 million, representing a decrease of 16% compared to the same period last year. Meanwhile, the firm’s net loss widened to $139 million versus $91.6 million in Q4 2022. Despite an increase in the amount of computing power sold and Bitcoin (BTC) price recovery, Canaan said that its ASICs were sold at lower prices compared to the market last year.
In addition, the firm forecasts tougher market conditions ahead. "For the first quarter of 2024 and the second quarter of 2024, the Company expects total revenues to be approximately US$33 million and US$70 million, respectively, considering the challenging market conditions across the industry," Canaan stated. During the quarter, the firm recognized a non-cash inventory writedown of $55 million due to pricing pressures.
