Chinese ASIC-maker Canaan Creative announced a 74.8% drop in gross profit for the third quarter as Bitcoin prices cause miners to operate at a loss.
The company racked up a profit of approximately $32.9 million in Q3 2022, compared with Q2’s $131.63 million.
Canaan streamlines expenses to survive bear market
Canaan provides high-performance computer equipment needed for Bitcoin mining, and recently launched a new series of machines, called AvalonMade13.
Mining is the process used to secure a decentralized proof-of-work network like the Bitcoin blockchain. Special blockchain node operators called miners earn Bitcoin as a reward for expending the computing power needed to secure the network. The more computers on the Bitcoin network, the more computing power (measured in Terahashes/second) is required to be a successful miner.
In Q3, Canaan sold 3.5 million Terahashes/s compared to 5.5 million for Q2 2022 and 6.7 million for…
