CEO Nangeng Zhang described the quarter as a "challenging period" due the bitcoin price tumbling below $20,000 in June and COVID-19 lockdowns in various cities in China. The lower bitcoin price "will bring prolonged headwinds to our performance in the coming quarters," Zhang added.

Computing power sold fell to 5.5 million terahashes per second from 5.9 million TH/s. Canaan responded to the tougher conditions by dropping prices on spot sales, which it said will lead to a dramatic decrease in gross margin during the second half.

"Looking forward to the coming quarters, we see a tougher market environment from the lower bitcoin price level, overall increased energy price, and various pandemic and geopolitical uncertainties globally, which may all jeopardize the demand and price for our products," CFO James Jin Cheng said.