Canaan Creative, a Bitcoin mining hardware builder, said that a greater proportion of its revenues came from sources abroad. The firm stated in its Q1 report that overseas sources are responsible for close to 80 percent of its Q1 2021 revenue. It appears that this is the first time that the hardware maker is reporting such progress in revenue from sources outside its local reach.
The Chinese firm made the announcement on Tuesday citing a gross profit of over $29.6 million out of a total proceeds of $61 million. This remarkable feat achieved in the first quarter dwarfs the 4.9 percent it achieved in the first quarter of last year. This feat is due to European and North American institutions becoming the largest purchasers of mining tools.
Tong, the CFO of Canaan Creative, made mention of their increasing efforts to increase their customer base in the quarter. He said, “We delivered solid financial results in the quarter, with total net revenues increasing by 489.9% year over year.”
The statement also revealed that the number of pre-orders it is receiving is growing too; over $184 million stands as its contract liability in March as against $67 million in December 2020.
More Gains for Chinese Hardware Manufacturers
In recent times, only on-shore Chinese buyers have been actively purchasing equipment from Canaan. Other hardware companies like MicroBT and Bitmain also had local sources as their biggest buyers. Only until recently has this increase been seen as the three mining firms are set to pull in about $6 billion combined in 2021, all from overseas sources.
According to Canaan, they recorded a 122 percent increase every yearly interval. The firm has analysed that over two exhashes per second is made for its total computing power sold. Local miners in China are also sourcing for backup means to continue operation after the government placed a crackdown on Bitcoin mining and transactions.