What Exactly is Cryptomining? Everything You Need to Know

Canaan Inc.’s second-quarter earnings report shows that the Chinese mining company earned significant profits at that time even though the period coincided with the decline in the price of the king coin. The company reported earnings of almost $168m (more than $1b China RMB). This amount is the highest in the company’s entire history.

Best Net Earnings For Canaan In Two Years 

The bitcoin miner maker’s earnings for the last quarter indicate a 168.5% rise from its Q1 2021 earnings and a 508% increase in comparison to its second-quarter earnings for last year. Asides from gross earnings, the company’s net earnings for the same quarter also shot up. It recorded almost $38m in revenue. The report states that this net profit represents its highest earnings in any quarter since it became publicly listed two years ago.

As widely reported in various media, the firm posted a $34m loss in its first-quarter earnings report for this year despite the king coin being on a strong rally during that time. One key factor for Canaan’s improved Q2 earnings was an increase in the number of mining rigs purchased by mining firms.

According to the Q2 sales report, Canaan’s hardware sales increased by over 190% compared to Q1 sales reports. Last month, a top bitcoin mining company revealed a collaboration with Canaan to deliver 22,000 BTC mining rigs and a further plan to deliver 185,000 more.

Commenting on the Q2 reports, the company’s CEO said, “our performance is nothing short of remarkable when you factor in the tough regulatory policies during that period. We delivered almost 6m TH/s of computing power to our customers.” 

As of this writing, Canaan stock rose by over 5.5%, but it is way off its peak price, which it attained towards the end of Q1 2021. Performance-wise, Canaan’s stock price has gained more than 38% since the beginning of the year and is net positive so far this year.

Mid-Cap Coins Are Dominating 

The king coin continues to suffer from last week’s flash crash which affected the entire crypto market. It is yet to retest its pre-crash price. Strangely, most of the mid-cap tokens have recovered and have regained almost all their pre-crash prices. So far this month, mid-cap coins have outperformed small and large caps coins.

The large-cap coins have gained almost 1%, while the small-cap coins have lost about 3.5% since the start of this month. The king coin is not left out; it is down by 5.5% this month, making it the worst-performing digital asset this month. The altcoin market rally the week after the flash crash has been swift. Algorand’s native token’s recovery was so remarkable that it pulled up a whole index as it was recovering.

Yet, the leading cryptocurrency keeps struggling with low momentum. Despite the mid-cap altcoins’ outstanding performances, bitcoin retains its market dominance. As of this writing, bitcoin’s market dominance is at 41.48%, a 1% decrease from the previous week’s. However, technical indicators show a new bullish run is on the horizon.