Investing.com | Author Louis Juricic
Published Aug 18, 2023 14:50
Canaan Inc. (CAN) ("Canaan" or the "Company" or "We"), a leading high-performance computing solutions provider, today announced that the challenges set forth below may adversely impact the Company's bitcoin generation and revenue from its mining activities, primarily due to reduced uptime, beginning in the third quarter of 2023.
Kazakhstan Regulatory Changes
To ensure legal compliance, the Company decided to temporarily shut down approximately 2.0 Exahash/s of its mining computing power in
The Rules were released by The Ministry of Digital Development, Innovations and Aerospace Industry of the
With a hope to resume mining operations upon receipt of approval, the Company has been working actively to obtain a Type II license for mining hardware owners since early July. However, it must wait for one of its local partners to obtain its Type I license for mining infrastructure possessors before the Company can complete its license application. This local partner has applied for a license but its application remains pending. The Company now anticipates a continued suspension of its mining operations in
The Company has been monitoring potential policy changes and their impact in
The Company and its local mining partners are actively pursuing the necessary licenses. While the Company remains optimistic about being able to obtain such licenses and continue its
Dispute Relating to Joint Mining Activities in the
On
The challenges outlined above are anticipated to substantially affect the Company's operational mining computing power starting in the third quarter of 2023. We recognize that operating in a dynamic market environment comes with its share of uncertainties. Navigating the complex landscape of varied legal frameworks across countries, coupled with unpredictability stemming from collaborating with partners in an evolving market, underscores the inherent operational challenges we aim to address. Such risks are indeed at the forefront of our operational strategy, which we are actively working to improve so that we may proactively solve and manage these challenges.
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