Canaan crypto stock reported a revenue drop of 82.1% to $56.8 million in the fourth quarter of 2022 and may fall further.

Canaan, the China-based mining hardware manufacturer, reported revenue of RMB 391.9 million ($56.8 million) in the fourth quarter of 2022. That is a decrease of 59.9% from the third quarter’s revenue of RMB 978.2 million ($140.9 million). And, compared to Q4 2021, it is a drop of a whopping 82% from RMB 2,184.6 million ($314.55 million).

Canaan also focused on self-mining in 2022; hence its mining revenue has been growing quarter-on-quarter. In Q4 2022, the mining revenue was RMB 72.2 million ($10.5 million), a growth of 16.3% from the mining revenue of RMB 62.0 million in Q3 2022. ($8.9 million).

Mining revenue is up 368.2% compared to Q4 2021’s RMB 15.4 million ($2.2 million.)

The screenshot below shows that the company has increased its Bitcoin holdings quarter-on-quarter, and Q4 Bitcoin holding was 757.

Canaan incurred a gross loss of RMB 230.9 million ($33.5 million) in Q4 2022. In contrast, the third quarter was profitable, with a gross profit of RMB 219.3 million ($31.6 million).

Chief Financial Officer James Cheng explains, “Our gross loss was partially due to greater depreciation as a result of our growing Bitcoin mining fleet.”

Canaan stock has been in a downtrend, hitting lower lows after rejection from the 50 weekly Simple Moving Average.

On Monday, other crypto stocks also closed in the red. MicroStrategy dropped by 4.7% and Coinbase by 2.7%.

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