Canaan Inc. Reports Unaudited Fourth Quarter and Full Year 2024 Financial Results

Total revenues of US$88.8 million exceeds guidance, up 80.9% YoY

Total computing power sold achieves record high of 9.1 million TH/s, up 65.9% YoY

Bitcoin mining revenues reach US$15.3 million, up 312.5% YoY

SINGAPORE, March 26, 2025 /PRNewswire/ -- Canaan Inc. (NASDAQ:CAN) ("Canaan" or the "Company"), an innovator in crypto mining, today announced its unaudited financial results for the three months and twelve months ended December 31, 2024.

Fourth Quarter 2024 Operating and Financial Highlights

Total revenues were US$88.8 million, which beat the guidance of US$80 million and increased 80.9% year-over-year.

Total computing power sold was 9.1 million Terahash per second (TH/s), representing a year-over-year increase of 65.9%, setting a new high.

Mining revenue was US$15.3 million and increased 312.5% year-over-year, with 186 Bitcoins mined at an average revenue of US$82,174 per Bitcoin.

Net loss was US$92.9 million, compared to US$139.0 million in the same period of 2023.

Non-GAAP adjusted EBITDA was a gain of US$19.3 million, compared to a loss of US$69.4 million in the fourth quarter of 2023.

Full Year 2024 Operating and Financial Highlights

Total revenues were US$269.3 million, representing a year-over-year increase of 27.4% from US$211.5 million in 2023.

Total computing power sold was 26.0 million TH/s, representing a year-over-year increase of 32.6% from 19.6 million TH/s in 2023.

Mining revenue was US$44.0 million, representing a year-over-year increase of 29.6% from US$34.0 million in 2023.

Net loss was US$249.8 million, narrowing 39.7% year-over-year.

Non-GAAP adjusted EBITDA was a loss of US$71.5 million, narrowing 73.9% year-over-year.

Nangeng Zhang, chairman, and chief executive officer of Canaan, commented, "We closed out 2024 on a strong note, delivering robust results in the fourth quarter that exceeded our guidance, with total revenue reaching US$88.8 million. This outstanding top-line performance was primarily driven by the large-scale delivery of our latest A15 series, which contributed to a record-breaking 9.1 million TH/s in total computing power sold. Simultaneously, our mining operations capitalized on the favorable bitcoin price environment in Q4, achieving a remarkable 186 bitcoins mined and generating US$15.3 million in mining revenue, marking a sequential increase of 70.7%. Recently, we further expanded 4.7EH/s for our mining operations in North America through two new projects in Pennsylvania and Texas.

"Looking back on the past year, we remained steadfast in our commitment to delivering high-quality, customized mining solutions, such as our high-performance A15 series and the dual-function Avalon Home Series, catering to a diverse global customer base. In key markets like North America, we strengthened our local presence and established strategic partnerships with leading publicly listed mining companies, enhancing our brand recognition and market share. Despite navigating complex regulatory landscapes and shifting market conditions, we made significant progress in expanding our mining hash rate toward our goal of 10EH/s in North America and 15EH/s globally by mid-2025. Meanwhile, we continued to advance our global strategy across research and development, supply chains, production, and logistics to adapt to the evolving compliance environment. With unwavering confidence in Bitcoin's long-term potential, we remain dedicated to innovation, operational excellence, and cementing our role as a key player in the Bitcoin ecosystem."

Jin "James" Cheng, chief financial officer of Canaan, stated, "We achieved excellent results in Q4, with total revenue significantly surpassing our guidance. This exceptional performance was driven by the ramp-up in A15 series bulk deliveries, leading to products revenue of US$73.5 million, a 63.6% year-over-year increase. Our mining business, which serves as our second growth engine, generated US$15.3 million in revenue, up 312.5% year-over-year and 70.7% quarter-over-quarter, while maintaining a highly competitive all-in power cost. This enabled us to accelerate our bitcoin accumulation through mining by leveraging bitcoin price tailwinds in the fourth quarter. As a result, our owned cryptocurrency reached 1,292.5 bitcoins by year-end, reinforcing our financial position. Additionally, due to strong top-line growth and cost optimization, we significantly narrowed our gross loss to US$6.4 million. Although certain non-cash items hit our bottom line, our net loss of US$92.9 million narrowed 33.2% year-over-year, and we achieved EBITDA breakeven and a gain of US$19.3 million in adjusted EBITDA for the quarter.

"The large-scale production and delivery of the A15 series contributed to our cash inflows and optimized our inventory structure as the model became our primary inventory component. As bitcoin prices climbed in Q4, generating fair value gains, our balance sheet was further strengthened, underscoring the advantages of our mining business and our HODL strategy. Looking ahead, we remain focused on executing advanced product deliveries, expanding our mining hash rate, and capitalizing on the anticipated market momentum to enhance our market presence."

Fourth Quarter 2024 Financial Results

Total revenues in the fourth quarter of 2024 were US$88.8 million, as compared to US$73.6 million in the third quarter of 2024 and US$49.1 million in the same period of 2023. Total revenues consisted of US$73.5 million in products revenue, US$15.3 million in mining revenue and US$20 thousand in other revenues.

Products revenue in the fourth quarter of 2024 was US$73.5 million, compared to US$64.6 million in the third quarter of 2024 and US$44.9 million in the same period of 2023. The sequential and year-over-year increase were driven by increased computing power sold, which was 9.1 million TH/s, increasing 24.7% sequentially and 65.9% year-over-year.

Mining revenue in the fourth quarter of 2024 was US$15.3 million, representing an increase of 70.7% from US$9.0 million in the third quarter of 2024 and an increase of 312.5% from US$3.7 million in the same period of 2023. The sequential and year-over-year increases were mainly attributable to an increase in mining computing power energized and an increase in the bitcoin price.

Cost of revenues in the fourth quarter of 2024 was US$95.1 million, compared to US$95.1 million in the third quarter of 2024 and US$103.1 million in the same period of 2023.

Products costs in the fourth quarter of 2024 were US$80.2 million, compared to US$81.6 million in the third quarter of 2024 and US$95.8 million in the same period of 2023. The sequential and year-over-year decreases were mainly attributable to decreased inventory write-down and prepayment write-down. The inventory write-down and prepayment write-down for this quarter were US$13.6 million, compared to US$22.9 million for the third quarter of 2024 and US$55.5 million for the same period of 2023. Products costs consist of direct production costs of mining machines, and indirect costs related to production, as well as inventory write-down and prepayment write-down.

Mining costs in the fourth quarter of 2024 were US$14.9 million, compared to US$13.5 million in the third quarter of 2024 and US$6.0 million in the same period of 2023. Mining costs herein consist of direct production costs of mining operations, including electricity and hosting, as well as depreciation of deployed mining machines. The sequential and year-over-year increases were mainly due to the increase in deployed computing power for the Company's mining operations.  The depreciation in this quarter for deployed mining machines was US$6.0 million, compared to US$6.5 million in the third quarter of 2024 and US$3.8 million in the same period of 2023.

Gross loss in the fourth quarter of 2024 was US$6.4 million, compared to US$21.5 million in the third quarter of 2024 and US$54.1 million in the same period of 2023.

Total operating expenses in the fourth quarter of 2024 were US$49.3 million, compared to US$35.3 million in the third quarter of 2024 and US$39.2 million in the same period of 2023.

Research and development expenses in the fourth quarter of 2024 were US$16.6 million, compared to US$14.8 million in the third quarter of 2024 and US$10.8 million in the same period of 2023. The sequential increase was mainly due to an increase of US$1.2 million in research and development expenditure and an increase of US$0.8 million in staff cost. The year-over-year increase was mainly due to an increase of US$4.5 million in staff costs and an increase of US$1.3 million in research and development expenditure. Research and development expenses in the fourth quarter of 2024 also included share-based compensation expenses of US$1.8 million.

Sales and marketing expenses in the fourth quarter of 2024 were US$1.3 million, compared to US$1.7 million in the third quarter of 2024 and US$1.8 million in the same period of 2023. The sequential and year-over-year decrease was mainly due to a decrease in staff cost. Sales and marketing expenses in the fourth quarter of 2024 also included share-based compensation expenses of US$45 thousand.

General and administrative expenses in the fourth quarter of 2024 were US$27.8 million, compared to US$13.2 million in the third quarter of 2024 and US$22.2 million in the same period of 2023. The sequential increase was mainly due to an increase of US$4.8 million in professional service fees, an increase of US$3.1 million in staff cost, an increase of US$3.1 million in share-based compensation expenses and an increase of US$3.0 million in allowance of doubtful receivables. The year-over-year increase was mainly due to an increase of US$4.0 million in professional service fees, an increase of US$3.0 million in allowance of doubtful receivables, and an increase of US$1.1 million in share-based compensation expenses, partially offset by a decrease of US$2.8 million in staff cost. General and administrative expenses in the fourth quarter of 2024 also included share-based compensation expenses of US$7.8 million, including US$4.0 million for one-off accelerated compensation due to the canceled share-based awards.

Impairment on property and equipment in the fourth quarter of 2024 was US$4.0 million, compared to US$6.5 million in the third quarter of 2024 and US$6.3 million in the same period of 2023.

Loss from operations in the fourth quarter of 2024 was US$55.6 million, compared to US$56.8 million in the third quarter of 2024 and US$93.3 million in the same period of 2023.

Change in fair value of cryptocurrency and Change in fair value of financial derivative in the fourth quarter of 2024 were a gain of US$15.6 million and a gain of US$23.4 million, respectively, compared to a loss of US$1.7 million and a gain of US$4.2 million in the third quarter of 2024, respectively. The increases were mainly due to the increased bitcoin price.

Change in fair value of financial instruments in the fourth quarter of 2024 was a gain of US$17.2 million, compared to a gain of US$1.2 million in the third quarter of 2024 and a loss of US$10.9 million in the same period of 2023, which was mainly due to the changes in fair value of Series A and Series A-1 convertible preferred shares.

Excess of fair value of Convertible Preferred Shares in the fourth quarter of 2024 was US$22.1 million, compared to US$28.3 million in the third quarter of 2024 and US$59.2 million in the same period of 2023.

Foreign exchange gains, net in the fourth quarter of 2024 were US$5.7 million, compared with a loss of US$1.0 million in the third quarter of 2024 and a gain of US$1.4 million in the same period of 2023, respectively. The foreign exchange gains were due to the U.S. dollar appreciation against the Renminbi during the fourth quarter of 2024.

Other income, net in the fourth quarter of 2024 was US$8.3 million, compared to an income of US$0.2 million in the third quarter of 2024 and an expense of US$0.4 million in the same period of 2023, mainly due to a release of payment obligation.

Loss before income tax expense in the fourth quarter of 2024 was US$7.6 million, compared to US$82.3 million in the third quarter of 2024 and US$162.1 million in the same period of 2023.

Income tax expense in the fourth quarter of 2024 was US$85.3 million, compared to an income tax benefit of US$6.7 million in the third quarter of 2024 and an income tax benefit of US$23.1 million in the same period of 2023. The income tax expense was mainly due to the valuation allowance recorded to deduce the carrying value of deferred tax assets for certain tax loss carry-forwards, as well as unrecognized tax benefit related to the potential uncertainty in previous years' intra-entity transactions.

Net loss in the fourth quarter of 2024 was US$92.9 million, compared to US$75.6 million in the third quarter of 2024 and US$139.0 million in the same period of 2023.

Non-GAAP adjusted EBITDA in the fourth quarter of 2024 was a gain of US$19.3 million, as compared to a loss of US$34.1 million in the third quarter of 2024 and a loss of US$69.4 million in the same period of 2023. For further information, please refer to "Use of Non-GAAP Financial Measures" in this press release.

Foreign currency translation adjustment, net of nil tax, in the fourth quarter of 2024 was a loss of US$9.7 million, compared with a gain of US$5.1 million in the third quarter of 2024 and a loss of US$0.3 million in the same period of 2023, respectively.

Basic and diluted net loss per American depositary share ("ADS") in the fourth quarter of 2024 were US$0.33. In comparison, basic and diluted net loss per ADS in the third quarter of 2024 were US$0.27, while basic and diluted net loss per ADS in the same period of 2023 were US$0.77. Each ADS represents 15 of the Company's Class A ordinary shares.

Full Year 2024 Financial Results

Total revenues in the full year of 2024 increased to US$269.3 million from US$211.5 million in 2023.

Products revenue in the full year of 2024 increased to US$223.2 million from US$176.9 million in 2023. The increase was mainly driven by the increased computing power sold, which was 26.0 million TH/s and increased 32.6% year-over-year.

Mining revenue in the full year of 2024 increased to US$44.0 million from US$34.0 million in 2023. The increase was mainly due to the increased computing power energized for mining and an increase in the price of bitcoin.

Cost of revenues in the full year of 2024 decreased to US$353.6 million from US$452.3 million in the full year of 2023.

Products costs in the full year of 2024 were US$301.3 million, compared to US$368.1 million in the full year of 2023. The decrease was mainly due to a decline in inventory write-down and prepayment write-down.

Mining costs in the full year of 2024 were US$51.6 million, compared to US$81.8 million in the full year of 2023. Mining costs consist of direct production costs of mining operations, including electricity and hosting, as well as depreciation. The depreciation in the full year of 2024 for deployed mining machines was US$22.5 million, compared to US$53.2 million in the full year of 2023.

Gross Loss in the full year of 2024 was US$84.3 million, compared to US$240.8 million in the full year of 2023.

Total operating expenses in the full year of 2024 decreased to US$142.8 million from US$170.1 million in the full year of 2023.

Research and development expenses in the full year of 2024 decreased to US$61.3 million from US$64.8 million in the full year of 2023, primarily due to a decrease in staff costs.

Sales and marketing expenses in the full year of 2024 decreased to US$5.7 million from US$8.2 million in the full year of 2023. The decrease was mainly attributable to a decrease in staff costs.

General and administrative expenses in the full year of 2024 decreased to US$71.7 million from US$73.3 million in the full year of 2023.

Gain on disposal of property, equipment and software in the full year of 2024 increased to US$7.2 million from US$2.1 million in the full year of 2023. The increase was mainly due to the disposal of self-used mining machines.

Impairment on property and equipment in the full year of 2024 was US$11.3 million, compared to US$21.1 million in the full year of 2023.

Loss from operations in the full year of 2024 was US$227.1 million, compared to US$410.9 million in the full year of 2023.

Change in fair value of cryptocurrency and Change in fair value of financial derivative in the full year of 2024 were a gain of US$42.4 million and a gain of US$17.6 million, respectively.

Change in fair value of financial instruments in the full year of 2024 was a gain of US$20.6 million, compared to a loss of US$10.9 million in the full year of 2023.

Excess of fair value of Convertible Preferred Shares in the full year of 2024 was US$50.7 million, compared to US$59.2 million in the full year of 2023.

Foreign exchange gains, net, in the full year of 2024 were US$14.1 million, compared with a gain of US$12.3 million in the full year of 2023.

Net loss in the full year of 2024 was US$249.8 million, compared to US$414.2 million in the full year of 2023.

Non-GAAP adjusted EBITDA in the full year of 2024 was a loss of US$71.5 million, compared to a loss of US$273.7 million in the full year of 2023.

Foreign currency translation adjustment, net of nil tax, in the full year 2024 was a loss of US$13.6 million, compared to a loss of US$7.0 million in the full year of 2023.

Basic and diluted net loss per American depositary share ("ADS") in the full year of 2024 was US$0.92, compared to basic and diluted net loss per ADS of US$2.41 in the full year of 2023.

As of December 31, 2024, the Company held Cryptocurrency assets with a fair value of US$61.8 million and Cryptocurrency receivable with an aggregate fair value of US$69.6 million. Cryptocurrency assets primarily consist of 562.3 bitcoins owned by the Company and 79.3 bitcoins received as customer deposits. Cryptocurrency receivable consists of 600 bitcoins pledged for secured term loans, 100.3 bitcoins transferred to a fixed term product, and 30 bitcoins prepaid for professional services. The classification of cryptocurrency receivable between current and non-current assets is consistent with the corresponding secured term loans. As of December 31, 2024, the Company held a total of 1,371.9 bitcoins.

As of December 31, 2024, the Company had cash of US$96.5 million, compared to US$96.2 million as of December 31, 2023.

Accounts receivable, net as of December 31, 2024 was US$1.5 million, compared to US$3.0 million as of