There are many entrepreneurs around the world that believe blockchain and cryptocurrency have the potential to change the world. However, at the end of the day, the fact is that companies have to remain profitable to survive, and the fact that 2018 was so bearish has taken its toll on various companies, some of whom have completely folded.
One cryptocurrency mining giant that is certainly feeling the effect is Canaan, but they are taking a different approach. Instead of worrying about posting a massive profit, the company is instead focused on surviving. The company is now claiming that it could survive three more years of bearish markets.
About The Claim
Cheng Fend is the sales director at Canaan, and the one who made the claim in a recent interview. Fend claimed that the company had “stored up enough ‘ammunition’ so the company is resilient now.” He then added: “If the bear market goes on for three years, it’s not a problem.”
Fend also pointed out that the company was diversifying, and that it was entering the field of the field of AI chips. He did not downplay the amount of revenue that the company can make in this sector, stating that “in the next one or two years, it is possible to generate 30% of the total operating revenue from AI chips.”
About The Sector
It’s not surprising that the company is focused on survival rather than profit, as it has allowed for its application for a Hong-Kong based initial public offering (IPO) to lapse several months ago, in November of 2018. Around the same time, many were questioning whether Bitmain was truly as profitable as it claimed, as well.
Despite this, Fend made it clear that the company still plans on going public. He stated: Even though the first application for listing lapsed, we are still in the process of application and being listed is our primary objective.”