Core Insights - Canaan Inc. reported total revenues of US$82.8 million for Q1 2025, exceeding guidance and reflecting a 135.9% year-over-year increase [2][7] - Bitcoin mining revenues reached US$24.3 million, marking a 131.9% year-over-year increase [2][9] - The company achieved a gross profit of US$0.6 million, a significant improvement from a gross loss of US$37.3 million in Q1 2024 [3][12] Financial Performance - Total computing power sold was 5.5 million Terahash per second (TH/s), a 62.6% increase year-over-year [2][4] - The average revenue per mined bitcoin was US$93,466, with a total of 259 bitcoins mined [2][9] - Cost of revenues for Q1 2025 was US$82.1 million, down from US$95.1 million in Q4 2024 [9][10] Operational Highlights - The company enhanced its installed mining capacity to 6.6 Exahash per second (EH/s) by March 31, 2025, with further growth to over 8 EH/s by the end of April [4][5] - Canaan's competitive all-in power cost for bitcoin mining was US$0.042 per kilowatt-hour (kWh) [5] - The company held 1,408 bitcoins on its balance sheet as of March 31, 2025, representing an all-time high [5][25] Strategic Initiatives - In response to market dynamics, Canaan is exploring strategic initiatives, including a potential share repurchase program, to address perceived undervaluation [29] - The company has decided to withdraw its previously issued full-year 2025 revenue guidance due to uncertainties from U.S. tariff measures [35] - For Q2 2025, Canaan expects total revenues to be approximately US$100 million, subject to market conditions [36] Expense Management - General and administrative expenses decreased by over 39% sequentially, contributing to a narrowed operating loss of US$37.6 million [6][12] - Research and development expenses increased to US$18.9 million, reflecting ongoing investment in innovation [13][12] - The company strategically accumulated inventory of the A15 series in preparation for market rebounds [6]

Financial Data and Key Metrics Changes - In Q4 2024, total revenue reached approximately $89 million, exceeding guidance of $80 million, marking a year-over-year growth of approximately 81% and the highest quarterly revenue in the past two years [13][54]. - For the full year, total revenue was nearly $270 million, up 27.4% year-over-year [13]. - Adjusted EBITDA for Q4 was a gain of $19.3 million, the first EBITDA profitability since the mining machine market downturn began two years ago [40][70]. Business Line Data and Key Metrics Changes - Mining machine sales contributed $73 million in revenue, up 64% year-over-year, with 9.1 million terahash per second of computing power sold, a record high [14][62]. - Mining revenue reached $15.3 million in Q4, an increase of 313% year-over-year, with 186 Bitcoins mined, up 84% year-over-year [20][60]. - The A15 series became the main product, with over 17,000 units delivered in Q4, primarily to North American public mining companies [57][64]. Market Data and Key Metrics Changes - North America accounted for approximately 40% of mining machine sales, reflecting successful expansion in the region [15][57]. - The average selling price (ASP) for mining machines remained stable at $8.1 per terahash, with expectations for a return to a more reasonable level in Q1 2025 [63] [64]. Company Strategy and Development Direction - The company aims to achieve 10 exahash per second in North America and 15 exahash per second globally by mid-2025, with recent agreements to expand mining capacity in Pennsylvania and Texas [25][56]. - The focus on R&D and product innovation continues, with the A16 series expected to reach nearly 300 terahash per second [37][56]. - The company is exploring local production to adapt to evolving compliance environments and remains committed to the long-term potential of Bitcoin [50][51]. Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook for Q1 2025, expecting revenue of approximately $75 million due to seasonality and market volatility [45][81]. - For Q2 2025, revenue is estimated to be in the range of $120 million to $150 million, with a full-year guidance of $900 million to $1.1 billion [46][81]. - The management noted that the rising Bitcoin price and efficient mining operations contributed to improved margins and profitability [22][66]. Other Important Information - The company has established 26 service stations worldwide to enhance customer support and reduce parts delivery times [121]. - The total Bitcoin holding reached a record high of 1,293 by the end of Q4 2024, with a fair market value of approximately $123 million [78][79]. - The company has entered into an ATM agreement for fundraising, with net proceeds of $42.5 million utilized for expansion [75][76]. Q&A Session Summary Question: Update on site acquisition activity and power infrastructure - The company is actively seeking energy-rich regions in North America and has secured sufficient site resources to support its deployment plan [85]. Question: Demand outlook for the second half of the year - Management indicated strong demand in Q4 and expects significant sales growth in Q2 and Q3, contingent on Bitcoin prices and the economic environment [92][96]. Question: ASIC orders and foundry partner backlog - The company is gradually increasing production and managing inventory based on market demand, with flexibility to adjust orders as needed [104][106]. Question: Details on A16 ASIC improvements - The A16 ASIC utilizes cutting-edge technology and multiple technical advancements to achieve significant performance improvements [108][110]. Question: Customer service improvements in North America - The company has enhanced customer service through more service stations and improved product reliability, aiming to outperform competitors [121][124]. Question: North American customer pipeline and sales funnel - The company has secured major clients in North America, with a growing number of retail customers contributing to exceptional growth [128][130].

Financial Data and Key Metrics Changes - In Q4 2024, total revenue reached approximately USD 89 million, exceeding guidance of USD 80 million, resulting in year-over-year growth of approximately 81% [10][39] - For the full year, revenue was nearly USD 270 million, up 27.4% year-over-year [10] - Adjusted EBITDA for Q4 was USD 19.3 million, marking the first EBITDA profitability since the mining machine market downturn began two years ago [29][50] Business Line Data and Key Metrics Changes - Mining machine sales contributed USD 73 million in revenue, up 64% year-over-year, with 9,100,000 terahash per second of computing power sold, a record high [11][44] - Mining revenue reached USD 15.3 million in Q4, an increase of 313% year-over-year, with 186 Bitcoins mined, up 84% year-over-year [14][39] - The A15 series became the main product, with over 17,000 units delivered in Q4, primarily to North American public mining companies [41][44] Market Data and Key Metrics Changes - North America accounted for approximately 40% of mining machine sales, reflecting successful expansion in the region [11][12] - The price of Bitcoin rose from USD 61,000 at the beginning of the quarter to USD 93,000 at the end, positively impacting mining profitability [9][50] Company Strategy and Development Direction - The company aims to reach a mining capacity of 10 exahash per second in North America by mid-2025, with plans for further expansion [18][40] - The focus on R&D and product innovation continues, with the A16 series expected to achieve nearly 300 terahash per second [27][41] - The company is exploring local production to adapt to evolving compliance environments and strengthen its market position [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for Q1 2025, expecting revenue of approximately USD 75 million, with a stronger outlook for Q2 [32][57] - The company noted that recent volatility in Bitcoin prices could impact demand and revenue trajectory, but remains committed to annual targets [70][71] Other Important Information - The company has established 26 service stations worldwide to improve customer service and support [91] - Cash flow from operations turned positive, generating USD 17 million in Q4, strengthening the cash balance to USD 96 million [52][51] Q&A Session Summary Question: Update on site acquisition activity and power infrastructure - Management is actively seeking sites in energy-rich regions across North America and has secured sufficient resources to support current deployment plans [61][62] Question: Demand outlook for the second half of the year - Management indicated strong sales performance in Q4 and expects significant inventory turnover in Q2 and Q3, with demand dependent on Bitcoin prices and the economic environment [66][68] Question: ASIC orders and production capacity - The company is gradually increasing production but is not placing orders at maximum capacity due to market conditions; production will continue through Q3 [78][80] Question: Details on the A16 ASIC improvements - The A16 ASIC will utilize advanced technology and design optimizations to achieve performance improvements, with production ramping up in Q2 and Q3 [81][83] Question: Customer service improvements in North America - The company has enhanced customer service through localized support and improved product reliability, aiming to outperform competitors [91][93] Question: North American customer pipeline and sales funnel - The company has secured major clients in North America, with a growing number of retail customers contributing to sales growth [95][96]