Canaan's Q1 2025 Earnings Call: Unpacking Contradictions in Self-Mining Strategy, Pricing, and Tariff Impacts

Self-Mining Expansion and Strategy, ASP and Pricing Strategy, Tariff Impact and Business Strategy, Tariff Impact on Global Expansion Strategy, and Expansion Plan for Self-Mining are the key contradictions discussed in Canaan's latest 2025Q1 earnings call.



Revenue Growth and Market Challenges:
- Canaan Inc. reported total revenues of $82.8 million for Q1 2025, exceeding the previous guidance of $75 million and representing a 136% year-over-year increase.
- Growth was driven by strong execution and resilience across global markets, despite the challenging macroeconomic environment marked by tariffs and falling bitcoin prices.

Product Sales and ASP Increase:
- The company delivered 5.5 exahash per second in total computing power sold during Q1, up 62.6% year-over-year, with an average selling price per terahash rising to $10.5, a 30% sequential growth.
- This increase was attributed to the large-scale delivery of A15 series mining machines and strong customer demand in certain regions, although the US market faced headwinds due to tariffs.

Self-Mining Performance and Revenue:
- Canaan's self-mining business saw a total of 259 bitcoins mined in Q1, up 39% quarter-over-quarter, with mining revenue reaching a record high of over $24 million, marking a 59% sequential increase.
- This was primarily due to the continued growth of energized hash rate and optimal project partnerships, made possible by competitive electricity costs of $4.2 per kilowatt hour.

Tariff Impacts and Global Strategy:
- The US imposed tariffs of up to 20% on goods from China and 10% on imports from all countries, affecting global mining machine demand.
- The company is adopting a more cautious approach to expansion, focusing on global opportunities beyond North America, driven by uncertainties in the US market and increased mining costs due to tariffs.