Canaan Inc. (NASDAQ: CAN), a Chinese ASIC manufacturer has announced their intent to expand into the U.S. Bitcoin mining scene.
This comes after already having a successful pilot operation in the Bitcoin mining heavy country of Kazakhstan. Canaan has deployed over 10,000 of their own miners. “Mining in Kazakhstan is doing well and moving faster, and we expect big growth as well,” said the mining company executive in an interview with Forkast.
Showing strong financials in the initial test run in Kazakhstan, the Chinese manufacturer wants to continue to diversify their income streams.
Canaan booked 236.7% year-on-year revenue growth in Q1 of 2022, with net income expanding to the U.S. $65.5 million versus $177,875 in the same period last year, according to its earnings report. All while the logistical and supply chain issues suffered from the pandemic.
However, the company was placed under scrutiny by the SEC for using an auditor that the regulatory agency could not validate or investigate.
Their plans for a U.S. expansion are part of the CEO’s (Nangeng Zhang) goals for diversifying their revenue streams rather than relying only on manufacturing ASICs. “We believe that our self-operated Bitcoin mining business will help us improve our financial performance as well as expand our business scope and customer base,” said Zhang during the interview.
Mining is currently legally banned in China while more incentivized jurisdictions reap the rewards by being a destination for businesses and mining companies. Right now, the U.S. has a healthy amount of Bitcoin mining companies and that number continues to increase during the bear market.