The NASDAQ-listed ASIC mining manufacturer Canaan Inc. plans to accumulate Bitcoin directly and optimize its revenue streams by expanding into self-hosted mining operations. The Chinese crypto mining hardware producer giant, which currently has a market cap of over $1.3 billion and projected Q2 revenues of $250 million, is venturing into Bitcoin mining.
In a press release on Wednesday, the company said it was diversifying its operations into bitcoin mining as well as continuing to sell mining rigs in a bid to help lift its financial performance.
Canaan will begin with its first mining operation in Kazakhstan.
According to CEO Nangeng Zhang, Canaan will also be attempting to expand its business scope and customer base. “As we integrate more industry resources into our operations, we believe this business segment will enable us to revitalize our mining machine inventory, shield us from bitcoin volatility, and ensure our inventory sufficiency during market upturns,” said Zhang. Canaan is best known for its massive sales of ASIC mining machines, which has seen demand skyrocket during boom times as more mining businesses attempt to capitalize on bitcoin’s rising price.
The company is avoiding a single revenue stream approach.
The company said that it is hoping to avoid a single revenue stream from only selling the picks and shovels if something bitcoin’s price takes a turn for the worse. “Undue fluctuations in the price of Bitcoin, for instance, can have the adverse impact of inducing undue volatility in the revenue streams of mining hardware providers,” the Chinese mining manufacturer said in the press release.
“During a period of lull, the mining business will benefit from taking full advantage of the availability of … in-stock mining machines to be actively deployed in … mining operations at low electricity rates,” the company said.