Sunday, December 5, 2021

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The CEO of Nasdaq-listed Canaan Inc, a China-based agency that makes a speciality of Bitcoin (BTC) mining tools, argued that China’s Bitcoin mining ban ought to make allowances for green-energy customers throughout a convention name on Tuesday.

Zhang Nangeng stated that an indiscriminate ban on Bitcoin mining didn’t consider the potential financial advantages that might come up from embracing green-energy mining. Zhang acknowledged that mining might current an answer to the oversupply of electrical energy in sure areas of the nation, the place resultant low power costs already entice miners.

“For-profit miners desire areas with low electrical energy costs that point out oversupply, and sure power waste. Bitcoin miners additionally assist create jobs in impoverished areas and contribute to fiscal coffers,” stated Zhang.

Canaan’s stock price elevated 24% on Tuesday, including to 42% development for the week. The surge in Canaan’s share value got here amid the discharge of the agency’s financial results for the primary quarter of the yr, which present spectacular development since this time in 2020.

The corporate’s income grew 490% year-on-year, primarily from the sale of its ASIC mining tools. The corporate additionally recorded a internet earnings of $22.4 million after recording a internet lack of $5.9 million the yr earlier than.

“Our monetary efficiency improved considerably within the quarter, pushed by the Bitcoin value rally, greater buyer demand for high quality mining machines, and our potential to ramp up mining machine manufacturing and deliveries,” wrote Nangeng within the quarterly report.

The surge within the agency’s share value represents a swift turnaround after it sunk 41% over the course of the earlier month amid the Bitcoin value drop. The agency’s enterprise outlook predicted a rise in gross sales however stopped in need of offering additional monetary steerage because of the volatility within the worth of Bitcoin, which has a knock-on impact on mining demand.

“The Firm acknowledges that the traits in Bitcoin costs are presently onerous to foretell and can’t present monetary steerage as a consequence of Bitcoin’s value volatility in late Could of this yr,” the report acknowledged.