Sunday, August 1, 2021

Nasdaq listed Bitcoin miners urge China to open doors to green mining

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The CEO of Nasdaq-listed Canaan Inc, a China-based agency that focuses on Bitcoin (BTC) mining gear, 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 did not bear in mind the potential financial advantages that might come up from embracing green-energy mining. Zhang said that mining may current an answer to the oversupply of electrical energy in sure areas of the nation, the place resultant low vitality costs already entice miners.

“For-profit miners choose areas with low electrical energy costs that point out oversupply, and certain vitality 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% progress for the week. The surge in Canaan’s share worth got here amid the discharge of the agency’s financial results for the primary quarter of the 12 months, which present spectacular progress since this time in 2020.

The corporate’s income grew 490% year-on-year, primarily from the sale of its ASIC mining gear. The corporate additionally recorded a web earnings of $22.4 million after recording a web lack of $5.9 million the 12 months earlier than.

“Our monetary efficiency improved considerably within the quarter, pushed by the Bitcoin worth rally, larger 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 worth represents a swift turnaround after it sunk 41% over the course of the earlier month amid the Bitcoin worth drop. The agency’s enterprise outlook predicted a rise in gross sales however stopped wanting offering additional monetary steering 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 at the moment arduous to foretell and can’t present monetary steering on account of Bitcoin’s worth volatility in late Might of this 12 months,” the report said.