19.04.2024

Avalon Bitcoin Miner Maker Canaan Posts $13 Million Q3 Profit in New Filing

The company revealed in an updated filing of its initial public offering (IPO) application in the US on Wednesday that it has been able to bring home a profit of $13 million on a revenue of 670 million yuan, or $95 million, which records a 40 percent growth over the same period last year.

Canaan Creative, the world’s second-largest bitcoin miner maker, has made 94 million yuan, or about $13 million, in net profit for Q3 2019, following bitcoin price’s bull run since April this year.

That would give the company a total net loss of $31.2 million on a revenue of $132 million for nine months ending in September this year, as the firm recorded a net loss $45.8 million for the first half of 2019.

Canaan officially filed for an IPO in the U.S. last month as its third attempt to go public after its first two applications in mainland China and Hong Kong, respectively, fell through.

Bitcoin’s price jump since earlier this year has boosted the sales of Canaan’s Avalon miners, which resulted in the market’s demand outstripping the firm’s supply.

According to the latest filing, Canaan’s main sales volume for 2019 so far comes from its older Avalon 8 series products with 265,756 units sold, whereas its most latest A9 and A10 models recorded a sales volume of 88,034 and 56,556 units, respectively.

All in all, Canaan said in the filing that for the first nine months in 2019, it has sold a total computing power of 7.59 exhashes per second, which accounts for roughly eight percent of bitcoin’s current network hash rate.

Russia: New Law Would Let Police Confiscate Bitcoin From 2021

Russia is planning on creating legal statutes allowing the government to achieve the impossible: confiscation of Bitcoin.

As local financial news outlet RBC reported on Nov. 7 citing sources familiar with the matter, Russia’s interior ministry will work with various state organs to draw up the plans, which could enter into law in 2021.

Confiscating the non-confiscatable

The push does not single out Bitcoin, but instead refers to “digital assets” as a general phenomenon, chief among which are cryptocurrencies, says RBC.

The publication quoted Nikita Kulikov, head of a dedicated committee at the Russian parliament, as explaining:

“The constant growth trend in crimes using virtual assets, and the lack of consumer protection in the face of this kind of criminal onslaught, naturally dictate the need to develop mechanisms for legal regulation and control of virtual asset exchange.”

Among the options under consideration is the creation of a government cryptocurrency wallet for transferring funds.

Not your keys…

Russia has yet to implement its long-awaited package of laws regarding cryptocurrency, which has seen multiple delays.

According to various parties speaking to RBC, crypto would need legal recognition before the government could justify legal grounds to confiscate it as part of judicial proceedings.

As with other countries’ attempts, however, the way authorities would take control of investors’ holdings remains unclear.

In theory, RBC notes, crypto held on exchanges could be accessed if the exchange in question complies. For coins held in wallets to which the investor holds the private keys, the method of acquisition is a mystery.

The plans thus speak to a potential lack of understanding of how decentralized cryptocurrencies such as Bitcoin operate. As Cointelegraph reported, India’s recent recommendation to ban them faces similar difficulties: effectively attempting to control the uncontrollable.

At the same time, Russia appears permissive to other facets of cryptocurrency. One of president Vladimir Putin’s own aides has revealed he wants to control 20% of Bitcoin mining production from a new farm located in the country’s northwest.

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