Japanese financial firm, SBI Holdings, sees a 40% drop in its hash rate after it ceases crypto mining operations in Siberia. In comparison, Chinese mining hardware manufacturer, Canaan, sees an increase of 117% in its mining revenue despite China’s crypto ban and the overall decrease in mining profits.
SBI Holdings shut down crypto mining in Siberia after Russia began its invasion of Ukraine in February, claiming the nation’s geopolitical changes and crypto winter as the primary causes. Moreover, a spokesperson for the firm revealed that SBI has not decided when it will completely withdraw from Siberia.
As a result, the financial giant saw a 40% decline in hash rate, with a current hash rate of 3.3 EH/s. In addition, the company reveals its pretax losses amounted to 9.7B Yen ($70.8M), with an overall loss of 2.4B Yen ($17.3M) in Q2 2022. This makes it SBI Holdings’ first quarterly loss in a decade.
On the contrary, Canaan sees an uptrend in its mining profits, with an increased net income of 608M Yuan ($89.2M), as compared to 245M Yuan ($35.9M) last year.
Despite the firm’s resilience in the face of a significant drop in mining profits, Canaan’s Chief Financial Officer, James Jin Cheng, claims that the mining giant has lowered its product prices to “shoulder the pressure” from its clients and estimates lowered profits in Q3 owing to tougher conditions in the mining industry.
Canaan, however, is continuing to operate during the crypto winter, with plans to establish its international headquarters in Singapore.
