Canaan, a Bitcoin mining hardware manufacturer, has reported a record quarterly revenue of $167 million for the second quarter of this year.
In an earnings report released on Wednesday, the company stated that it sold 5.9 million terahashes per second (TH/s) of hashing power during the quarter, implying that each TH/s of its Avalon equipment was priced at around $32. This hash rate accounts for roughly 4% of the bitcoin network’s total current hashing power.
According to Canaan, this is the “strongest quarterly sales in the company’s operating history,” with sales increasing five times year on year and more than 1.5 times over the first quarter.
Canaan earned a gross profit of $66 million with a net income of just under $40 million after deducting the cost of goods sold used to manufacture the equipment ($101 million).
This equates to a 40% gross profit margin for Canaan’s miner manufacturing business line.
Canaan’s record sales were largely due to the increased level of investment in mining equipment by institutional buyers since the beginning of the year, particularly those in North America.
Canaan had $161 million in contract liabilities as of June 30 for equipment pre-orders that it had yet to deliver to its customers.
The company anticipates a “sequential increase of 10% to 30%” in revenue for the third quarter.
Over the last two months, the company has sold at least 40,000 mining equipment units to Mawson, Hive Blockchain, and Genesis Digital Assets.
Canaan also announced in June that it had begun self-mining bitcoin in Kazakhstan in response to China’s crypto mining crackdown.