Mining Company Makes Huge Profit, Amidst Crypto Ban in China

A China-based crypto mining company, Canaan, seems unscathed by the crypto ban placed by the Chinese Government last year. Indications from all ends show tremendous growth and performance in the country’s cryptocurrency space. Following the announcement from the company earlier, crypto enthusiasts were shocked.

Despite Ban, Canaan Makes 117% Profits, Compared to 2021

The mining company revealed earlier via its financial reports that it had made approximately 117% profit from January to August compared to the same period in 2021. The company’s financial reports depict an astronomical growth since the inception of 2022. 

The Chinese crypto company released its financial report for the Q2 of 2022, a common tradition it has always depicted. According to the mining firm’s CEO, Zhang Nangeng, the total gains made in the year’s Quarter amounts to approximately $140 million/930 million RMB. 

An analysis of the company’s financial report revealed that during the same period in 2021, the company’s total profit was $91 million/452 million RMB. Although, the company made more losses in Q2 of 2022 compared to 2021, caused by the crash in BTC in the past few months. 

Canaan’s CEO revealed that, despite the profits, the past few months had been a bad season for the company. The cryptocurrency markets were all red, and the world’s largest cryptocurrency, BTC, trading below $20k in May, was wrecking.

CEO Zhang Nangeng also alleged that the company suffered losses from the lockdown of some cities in China due to Covid-19. Canaan operations were seized and stopped by the lockdown, which increased expenditures and decreased profits. 

Canaan Set To Expand and Dominate In The Global Markets

Canaan CFO James Jin Cheng announced the intention of crypto mining to expand and dominate the global markets. James stated that the company is working on creating and establishing a different branch and headquarters in big cities like Singapore. 

The CEO, Zhang Nangeng, added that the company’s developer would improve Canaan Bitcoin mining operations. He also revealed that the present situation and market price of Bitcoin affected the company, but the firm believes in the value of BTC in the long run.

“The winter season in the cryptocurrency markets is not our only concern; increased energy price, pandemic, and contagions are also inhibitory. However, we expect and prepare for a tough cryptocurrency market” – Canaan CEO, Zhang Nangeng

Recall that, late last year, the Chinese Government banned the use of significant cryptocurrencies like; Bitcoin, Ethereum, and others. The country’s lawmakers banned all use or affiliations with public blockchain network cryptocurrencies; users and enthusiasts could not trade, buy, sell or transact under the Chinese coast. 

The suspension generated mixed reactions from crypto users and enthusiasts as crypto users, companies, and firms were declared illegal. China’s Government arrested crypto users and shut down companies and firms with crypto-related operations. There were speculations that the government banned cryptocurrency to save energy.

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