Canaan, a bitcoin mining gear company, reported an unprecedented quarterly revenue of $167 million in the second quarter of this year.
In a financial report released Wednesday, the company stated that it sold 5.9 million terahashes per second (TH/s) of hashing power during the quarter, implying that each TH/s of their Avalon equipment cost about $32. That hash rate accounts for roughly 4% of the bitcoin network’s overall hashing power at the moment.
According to Canaan, this is the highest quarterly revenue in the firm’s operational history, up five times year over year and over 1.5 times over the first quarter.
Canaan had a gross profit of $66 million with a net gain of slightly under $40 million after deducting the cost of goods sold required to produce the equipment ($101 million).
For Canaan’s miner manufacturing business, this equates to a 40% gross profit margin.
Since the beginning of the year, Canaan’s sales success was primarily due to the increased level of investment in mining devices from institutional customers, notably in North America.
Canaan had contract obligations of $161 million as of June 30 for equipment pre-orders that it has yet to fulfill to its clients.
According to the company, revenues are expected to grow by 10% to 30% sequentially in the third quarter.
The company has sold at least 40,000 units of mining devices to Mawson, Hive Blockchain, and Genesis Digital Assets in the last two months.
Canaan also announced in June that it had begun self-mining bitcoin in Kazakhstan, despite China’s crypto mining ban.