Summary:

• Canaan, a Chinese Bitcoin mining company, reported slight improvements in some of its financial metrics in the first quarter of 2023.
• Net loss was $84.4 million in Q1, lower than its $91.6 million net loss in the previous quarter.
• Revenue totaled $55.1 million, against $58.3 million last quarter and $201.8 million in the same period of 2022.

Diluted Loss Per American Depositary Share

Chinese Bitcoin mining company Canaan reported slight improvements in some of its financial metrics in the first quarter of 2023. Diluted net loss per American depositary share (ADS) in the first quarter of 2023 was $0.51, down from $0.55 in the previous quarter, while diluted net earnings per ADS in the same period of 2022 stood at $0.38. According to Investopedia, an ADS is an equity share in a non-U.S. company held by a United States depositary bank and available for purchase by investors.

Market Demand

The quarterly results were impacted by several factors, including low market demand that hindered product revenue, the ongoing crisis in the banking system and the slow recovery of Bitcoin’s (BTC) price. Revenue generated from mining activities rose 3.3% from $10.7 million in the fourth quarter of 2022 and represents a 130.2% increase from $4