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Canaan (CAN) Stock Jumps 15% on Robust Q1 Crypto Mining Demand

Ollie Martin - AskTraders News writer
Ollie Martin trader
Updated 19 May 2022

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Key points:

  • Canaan, manufacturer of crypto mining computers, delivered on strong Q1 earnings
  • Unpredictability and uncertainty still weights on global growth strategies
  • EPS and revenue were more or less in line with analyst expectations

Digital assets have hit a bit of a rough patch lately, as tougher economic conditions pressure investors into lower risk returns rather than the volatile landscape of cryptocurrencies. Bitcoin recently dipped below the strong historic support of $30,000, suggesting volatility in digital assets is likely to remain a byproduct of the current economic uncertainty for at least the near future. Manufacturer of crypto-mining computers Canaan (NASDAQ: CAN) reported a strong first quarter despite the crypto dip, pointing to a strong trend in mining rather than online asset trading. 

The unpredictable environment has taken its toll on all industry, with unpredictability and logistical fogginess now becoming common features of the fiscal climate. Management commented on the company’s need to continue strengthening its partnerships with clients whilst expanding its global footprint as the only surefire way of surviving the tedious landscape. 

Read Also: Best Crypto To Invest In Right Now

As a result of continued expansion, Canaan sold 4.3M Thash/s of computing power over the first quarter, illustrating an 119% rise from 2M Thash/s in the same period of 2021. The first quarter also saw the unveiling of the company’s new international headquarters in Singapore, a hallmark of the company’s expansive global vision.

The company’s financials fell more or less in-line with analyst expectations. Adjusted earnings came in at $0.50 per share, hitting the $0.50 consensus estimate. Revenue for the first-quarter was $213.9M, just edging past the consensus of $213.86M. Still, CAN shares rose around 16% on the earnings release. For the second quarter, Canaan expects revenue of between $252.4M and $283.9M.

Ollie Martin - AskTraders News writer
Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.