The CEO of Canaan Inc, listed on Nasdaq, a China-based company specializing in Bitcoin (BTC) mining equipment, argued that China’s Bitcoin mining ban should take into account green energy users during a conference call Tuesday.
Zhang Nangeng said an indiscriminate ban on bitcoin mining failed to take into account the potential economic benefits that could come from adopting green energy mining.. He explained that mining could provide a solution to the surplus of electricity in certain regions of the country where the resulting low energy prices are already attracting miners.
â ???? For-profit miners prefer regions with low electricity prices that indicate oversupply and potential energy wastage. Bitcoin miners also help create jobs in impoverished regions and contribute to the tax fundâ ????said Zhang.
Canaan’s share price rose 24% on Tuesdaywhich is in addition to the 42% growth for the week, which came as part of the company’s release of the company’s financial results for the first quarter of the year. have seen spectacular growth since that date in 2020.
The company’s revenue increased 490% year over year, largely due to the sale of its ASIC mining equipment.. The company also posted net income of $ 22.4 million, following a net loss of $ 5.9 million the previous year.
“Our financial performance improved significantly over the quarter, driven by the rally in Bitcoin price, increased customer demand for quality mining equipment, and our ability to increase production and shipments from mine.Nangeng wrote in the quarterly report.
The company’s price spike represents a quick turnaround after plummeting 41% last month amid falling Bitcoin prices.. The company’s business outlook anticipated rising sales but waived further financial guidance due to the volatility in the value of Bitcoin, which is affecting mining demand.
“The company recognizes that it is difficult to predict the development of Bitcoin prices at the moment and cannot provide financial guidance due to the volatility of Bitcoin prices at the end of May this year.”it says in the report.