Financial Data and Key Metrics Changes - In Q1 2025, total revenues reached $82.8 million, exceeding guidance of $75 million, representing a 136% year-over-year increase [11][30][31] - Mining revenue was $24 million, up 132% year-over-year, with 2.59 bitcoins mined, a 33% increase year-over-year [30][31] - The average selling price (ASP) per terahash increased to $10.5, a 30% sequential growth [12][30] - Operating loss narrowed by 32% quarter-over-quarter and 45% year-over-year to $37.6 million [20][30] Business Line Data and Key Metrics Changes - The A15 series mining machines drove significant revenue growth, contributing $58.3 million to machine sales, a 149% year-over-year increase [32][34] - Total computing power sold reached 5.5 million terahash per second, up 63% year-over-year [12][32] - The self-mining business produced 2.59 bitcoins, with mining revenue reaching a record high of over $24 million, marking a 59% sequential increase [15][30] Market Data and Key Metrics Changes - The global Bitcoin price fluctuated, dropping from approximately $104,000 in January to $76,000 in early March, before rebounding to over $100,000 by the end of the quarter [9][10][21] - The US market faced significant challenges due to tariffs, impacting demand for mining machines [10][11][23] Company Strategy and Development Direction - The company is focusing on expanding its manufacturing capabilities in the US to mitigate tariff impacts and reduce supply chain risks [18][19] - There is an ongoing strategy to pivot towards self-mining and explore global expansion opportunities [24][25] - The company is evaluating strategic initiatives, including a potential share repurchase program to enhance shareholder value [27][39] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the US market due to ongoing tariff uncertainties and a lack of clear recovery signs [22][23] - The company anticipates revenues of approximately $100 million for Q2 2025, based on current market conditions [26][41] - Management remains optimistic about the long-term appreciation potential of Bitcoin despite short-term volatility [20][21] Other Important Information - The company maintained a cash balance of approximately $100 million and increased its Bitcoin holdings to 1,424 by the end of April 2025 [21][37] - The company achieved a gross profit of $600,000 for the first time in two years amid the bear market [30][34] Q&A Session Summary Question: Can you describe the trends in ASP and equipment pricing through the quarter? - Management noted that ASP climbed to $10.5 due to strong demand and positive feedback on the A15 series, with expectations for continued improvement in Q2 [44][46] Question: How is the shift towards HPC or AI hosting affecting your TAM? - Management acknowledged that some customers are redirecting power towards AI applications, but viewed it as a temporary fix rather than a strategic shift [50][51] Question: Can you clarify expansion plans for self-mining? - Management confirmed that self-mining projects are progressing, with new installed capacity added in North America and strong performance in Ethiopia [53][54] Question: What lead time is needed for orders in Q3 or Q4? - Management indicated that lead times have improved to 6-8 weeks due to inventory buildup, with expectations for further reductions if demand stabilizes [66][68] Question: Is there potential to shift manufacturing to the US to mitigate tariffs? - Management confirmed trial production in the US but highlighted the complexities and costs associated with full-scale manufacturing there [76][78] Question: How are you justifying continued wafer spending amid market uncertainties? - Management emphasized strong long-term partnerships with wafer suppliers and the need to secure production capacity through prepayments [92][96]

Canaan (CAN) Q1 2025 Earnings Call May 20, 2025 08:00 AM ET Speaker0 Ladies and gentlemen, thank you for standing by, and welcome to Canons Inc. First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the management prepared remarks, we will have a question and answer session. Please note that this event is being recorded. Now I'd like to hand the conference over to your speaker today, Ms. Gwynne Lauber, Investor Relations Director of the co ...