China might have lost the title of the world’s biggest Bitcoin mining hub to the US after the crypto ban in 2021, but Chinese crypto miner Canaan appears to be undeterred by the ban, going by its quarterly results.
Canaan, a leading provider of high-performance computing solutions, released its second-quarter results on 18 August. The company registered a 117% increase in gross profit in the quarter, or about $139 million in USD terms. Net income came in at $91 million, a 149% increase from the same period a year ago.
The firm attributed the rise in profit to foreign currency translation, which worked to its advantage this time around compared to previous losses due to the US dollar’s appreciation against the RMB. While the profit in the second quarter of the year looks impressive, Canaan noted that it was not easy, especially with Bitcoin (BTC) falling below $20,000 amid the crypto winter.
Crypto ban no deterrent
To rewind a bit, China shocked the crypto world by banning all crypto operations, including mining and trading, in September 2021. The surprise move pushed many firms to shift their operations to other countries to pursue their expansion plans. However, the financial report from Canaan clearly indicates that the crypto ban in China has not affected the crypto industry in the country.