0001104659-24-048300 | 20-F | XBRL Viewer

Leases (Tables)

12 Months Ended

Dec. 31, 2023

(a)

The components of lease expenses were as follows:


	For the Years Ended December 31,
	2021	2022	2023
Lease cost:
Reduction in the carrying amount of ROU assets	2,758	2,254	2,481
Interest of operating lease liabilities	253	193	115
Expenses for short-term lease within 12 months	—	216	417
Total lease cost	3,011	2,663	3,013

Summary of supplemental cash flow information related to leases


	For the Years Ended December 31,
	2021	2022	2023
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows from operating leases	3,253	2,944	2,356
Operating lease right-of-use assets obtained in exchange for lease obligations:
Operating leases	5,752	2,398	2,358
Operating lease liability settled through termination of lease:
Operating leases	406	358	2,301

Summary of supplemental balance sheet information related to leases


	As of December 31,
	2021	2022	2023
Weighted-average remaining lease term
Operating leases	2.4 year	1.9 year	1.2 year
Weighted-average discount rate
Operating lease	5.17% per annum	4.58% per annum	4.55% per annum

Schedule of maturities of lease liabilities


Years Ending December 31,		As of December 31, 2023
2024		1,244
2025		212
Total undiscounted lease payments		1,456
Less: imputed interest		(30)
Total operating lease liabilities		1,426
Amounts due within 12 months		1,216
Non-current operating lease liability		210

Basic and Diluted Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2023

Basic and Diluted Earnings (Loss) Per Share

Basic and Diluted Earnings (Loss) Per Share

16.	Basic and diluted earnings (loss) per share

Basic and diluted earnings (loss) per share have been calculated in accordance with ASC 260 on computation of earnings (loss) per share for the years ended December 31, 2021, 2022 and 2023 as follows:


	For the Years Ended December 31,
	2021	2022	2023
Basic earnings (loss) per share calculation
Numerator:
Net income (loss)	309,086	69,884	(414,153)
Denominator:
Weighted-average ordinary shares outstanding	2,521,667,815	2,560,106,403	2,579,202,596
Basic earnings (loss) per Class A and Class B ordinary share (US$ cent per share)	12.26	2.73	(16.06)


	For the Years Ended December 31,
	2021	2022	2023
Diluted earnings (loss) per share calculation
Numerator:
Net income (loss)	309,086	69,884	(414,153)
Denominator:
Weighted-average ordinary shares outstanding	2,521,667,815	2,560,106,403	2,579,202,596
Add: weighted-average RSUs	54,489,432	17,785,666	—
Weighted-average number of shares used in calculating diluted earnings (loss) per Class A and Class B ordinary share	2,576,157,247	2,577,892,069	2,579,202,596
Diluted earnings (loss) per Class A and Class B ordinary share (US$ cent per share)	12.00	2.71	(16.06)

The potentially dilutive securities that have not been included in the calculation of diluted net loss per share as their inclusion would be anti- dilutive are as follows:


	For the Year
	Ended December 31,
	2021	2022	2023
Weighted-average RSUs	—	—	30,741,795
Share options	114,000,000	114,000,000	144,000,000
Warrants	70,833,345	—	—

Summary of significant accounting policies - Additional Information (Details) ₸ in Thousands, ¥ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) segment	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 HKD ($)	Dec. 31, 2023 KZT (₸)	Dec. 31, 2023 SGD ($)
Summary of significant accounting policies
Allowance for accounts receivable	$ 14	$ 0	$ 0
Accounts payable	0	0
Impairment on cryptocurrency	4,706	7,880	0
Customer deposits	7,185	0
Impairment of indefinitely lived intangible assets	4,706	7,880	0
Non-current financial investment without readily determinable fair values	2,824	2,872
Impairment loss	0
Impairment loss of property, equipment and software	21,126	0	0
Prepayment received from customers	19,614	662
Revenue recognized from contract liability	$ 380	196,897	65,771
Payment terms under credit sales	The payment terms under installment policy generally consist of the installments over a period of 90 to 180 days.
Standard product warranty	360 days that the product will operate under normal use
Warranty costs incurred	$ 3,596	1,896	4,467
Advertising expense	1,643	964	691
Deferred government grant	9,191	0
Employee social security and welfare benefit expenses	$ 9,561	7,016	4,299
Appropriation to statutory general reserve percentage	10.00%
Statutory general reserve required maximum percentage of registered capital	50.00%
Number of operating segment \| segment	1
Number of reportable segment \| segment	1
Cumulative adjustment to increase retained earnings	$ (219,631)	194,522
Accounting Standards Update 2023-08 \| Cumulative Effect, Period of Adoption, Adjustment
Summary of significant accounting policies
Cumulative adjustment to increase retained earnings	18,723
Bank Time Deposits [Member]
Summary of significant accounting policies
Bank deposits insured by government authorities	3,013	1,766
Deposits with signature bank
Summary of significant accounting policies
Cash deposits		1,100
CHINA \| Deposits With Financial Institution [Member]
Summary of significant accounting policies
Bank deposits insured by government authorities \| ¥				¥ 500
HONG KONG \| Deposits With Financial Institution [Member]
Summary of significant accounting policies
Bank deposits insured by government authorities					$ 500
UNITED STATES
Summary of significant accounting policies
Long lived assets, net	9,266
UNITED STATES \| Deposits With Financial Institution [Member]
Summary of significant accounting policies
Bank deposits insured by government authorities	250
SINGAPORE \| Deposits With Financial Institution [Member]
Summary of significant accounting policies
Bank deposits insured by government authorities							$ 75
KAZAKHSTAN \| Deposits With Financial Institution [Member]
Summary of significant accounting policies
Bank deposits insured by government authorities \| ₸						₸ 15,000
Central Asia
Summary of significant accounting policies
Long lived assets, net	1,679
ETHIOPIA
Summary of significant accounting policies
Long lived assets, net	6,708
Other Income [Member]
Summary of significant accounting policies
Government grants received	$ 3,559	2,861	883
Minimum
Summary of significant accounting policies
Value added tax recoverable percentage	6.00%
Maximum
Summary of significant accounting policies
Value added tax recoverable percentage	12.00%
Statutory Reserves
Summary of significant accounting policies
Profit appropriations to statutory reserves	$ 0	769	$ 17
Cryptocurrency
Summary of significant accounting policies
Impairment on cryptocurrency	4,706	7,880
Customer deposits	7,185	0
Impairment of indefinitely lived intangible assets	$ 4,706	$ 7,880

Summary of significant accounting policies (Policies)

12 Months Ended

Dec. 31, 2023

Summary of significant accounting policies

Basis of preparation

(a)

Basis of preparation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).

Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below.

Use of estimates

(b)

Use of estimates

The preparation of the Company’s consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from such estimates.

The Company believes that accounting estimation of variable consideration for revenue recognition, warrant liability, valuation of series A convertible preferred shares, preferred shares forward contract liability, pre-delivery shares, deferred tax assets, write-down for inventories and prepayments, provision for reserve for inventory purchase commitments, valuation and recognition of share-based compensation, impairment on cryptocurrency, and impairment of property, equipment and software reflect significant judgments and estimates used in the preparation of its consolidated financial statements.

Management bases the estimates on historical experience and on various other assumptions as discussed elsewhere to the consolidated financial statements that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could materially differ from these estimates.

Consolidation

(c)

Consolidation

The Company’s consolidated financial statements include the financial statements of Canaan Inc. and its subsidiaries. All transactions and balances among Canaan Inc. and its subsidiaries have been eliminated upon consolidation.

Subsidiaries are those entities in which Canaan Inc. directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the Board of Directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders.

Foreign currency

(d)

Foreign currency

The Company has elected to change its reporting currency from Chinese Renminbi (“RMB”) to United States Dollars (“US$”) on January 1, 2023. Prior years’ comparative financial information has been recast as if the Company always used US$ as its reporting currency.

The functional currency of Canaan Inc. and its subsidiaries incorporated outside of the PRC is US$, while the functional currency of the PRC entities in the Company is RMB as determined based on the criteria of Accounting Standards Codification (“ASC”) 830, Foreign Currency Matters.

Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in other than the functional currency are re-measured at the balance sheet date exchange rate. The resulting exchange differences are included in the consolidated statements of comprehensive income (loss) as foreign exchange related gains or loss.

The financial statements of the Company are translated from the functional currency to the reporting currency, US$. Assets and liabilities of PRC entities are translated into US$ using the applicable exchange rates at the balance sheet date, income and expense items are translated at average exchange rates prevailing during the fiscal year. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a separate component of shareholders’ equity on the consolidated financial statement.

Warrant Liability

(e)

Warrant Liability

The freestanding warrants to purchase American Depositary Share (“ADSs”) at a future date were determined to be freestanding instruments that were accounted for as a liability. At initial recognition, the Company recorded the warrant liability on the consolidated balance sheets at its estimated fair value. The proceeds from issuance of ordinary shares and warrants are firstly allocated to warrant liability based on its fair value. The residual method is used to allocate the proceeds to shareholders’ equity. The warrant liability is subject to remeasurement at each reporting period and the Company adjusted the carrying value of the warrant liability to fair value at the end of each reporting period utilizing the binominal option pricing model, with changes in estimated fair value included in the change in fair value of financial instruments on the consolidated statement of comprehensive income (loss).

Fair value measurements

(f)

Fair value measurements

Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The three levels of inputs that may be used to measure fair value include:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Observable, market-based inputs, other than quoted prices, for the assets or liabilities either directly or indirectly.

Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

The Company’s financial instruments consist principally of cash, non-current financial investments, accounts receivable, accounts payable, preferred shares forward contract liability and other liabilities.

As of December 31, 2022 and 2023, the carrying values of cash, accounts receivable, accounts payable and other liabilities approximated to their fair values reported in the consolidated balance sheets due to the short term nature of these instruments.

The Group’s non-financial assets, such as Property, equipment and software and cryptocurrency, would be measured at fair value only if they were determined to be impaired. On a recurring basis, the Company measures its financial instruments at fair value.

The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy:


				Fair value at
				December
As of December 31, 2023	Level 1	Level 2	Level 3	31, 2023
Liabilities
Preferred shares forward contract liability	—	—	40,344	40,344

Cash

(g)

Cash

Cash represents bank deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal or use.


	As of December 31,
	2022	2023
RMB denominated bank deposits with financial institutions in the PRC	11,109	10,098
US dollar denominated bank deposits with financial institutions in the PRC	61,742	37,170
Others denominated bank deposits with financial institutions in the PRC	2	32
Subtotal	72,853	47,300
US dollar denominated bank deposits with overseas financial institutions	26,334	46,522
RMB denominated bank deposits with overseas financial institutions	8	7
Others denominated bank deposits with overseas financial institutions	2,356	2,325
Total	101,551	96,154

The bank deposits, with financial institutions in the mainland of the PRC, Hong Kong, United States, Singapore and Kahzakhstan are insured by the government authorities up to RMB500, HKD500, US$250, SGD75 and KZT15,000 per bank, respectively. The bank deposits including term deposits are insured by the government authorities with amounts up to US$1,766 and US$3,013 as of December 31, 2022 and 2023, respectively. The Company has not experienced any losses in uninsured bank deposits and does not believe that it is exposed to any significant risks on cash held in bank accounts. To limit exposure to credit risk, the Company primarily places bank deposits with large financial institutions in the PRC mainland, Hong Kong, United States, Singapore and Kahzakhstan with acceptable credit rating.

On March 10, 2023, Signature bank was closed by the California Department of Financial Protection and Innovation. On March 12, 2023, New York State Department of Financial Services took possession of Signature Bank and appointed the Federal Deposit Insurance Corporation (“FDIC”) as receiver. As of December 31, 2022, the Company held cash deposits US$1.1 million at Signature Bank. All these cash deposits have been transferred to another bank subsequent to the receivership by the end of March 2023.

Accounts receivable

(h)

Accounts receivable

Accounts receivable are presented net of allowance for credit loss. The allowance for credit loss is based upon the amount of losses expected to be incurred in the collection of these accounts pursuant to the guidance outlined in ASU 2016-13, Financial Instruments - Credit Loss (ASU 2016-13, Topic 326, or ASC 326), which the Company adopted on January 1, 2023. The estimated losses are calculated using the loss rate method based upon a review of outstanding receivables, including specific accounts, related aging, and on historical collection experience. These allowances reflect our estimate of the amount of our receivables that we will be unable to collect based on historical write-off experience and, as applicable, current conditions and reasonable and supportable forecasts that affect collectability. Our estimate could require a change based on changing circumstances, including changes in the economy or in the circumstances of individual customers. The Company takes a write-off of the account balances when the Company can demonstrate all means of collection on the outstanding balances have been exhausted. Provision for credit losses, net of recoveries for the period are included in general and administrative expenses in the accompanying consolidation statements of comprehensive income (loss). During the years ended December 31, 2021, 2022 and 2023, the Company recorded provision of allowance for accounts receivables of nil, nil and US$14, respectively.

Inventories

(i)

Inventories

Inventories, consisting of finished goods, work in process and raw materials, which are purchased from contractual manufacturers and component suppliers. Inventories are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving and obsolete inventory, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased.

The Company considers all data available, including future demand and subsequent changes in product prices that may provide additional information about the valuation of inventories at the balance sheet date.

Cryptocurrency

(j)

Cryptocurrency

Cryptocurrency is comprised of cryptocurrencies earned as noncash consideration in exchange for providing hash computation services to a mining pool as well as in exchange for the sale of mining equipment which are accounted for in connection with the Company’s revenue recognition policy disclosed in Note 2(o). Cryptocurrency is accounted for as intangible assets with indefinite useful lives in non-current assets in the consolidated balance sheets, because at the time of assessment, there is no foreseeable limit to the period over which such assets are expected to generate cash flows. The Company sells its digital currency on a first-in-first-out basis. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently if events or changes in circumstances indicate it is more likely than not that the asset is impaired. Impairment exists when the carrying amount exceeds its fair value. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. The Company has elected to bypass the optional qualitative impairment assessment and to track its cryptocurrency activity daily for impairment assessment purposes. The Company determines the fair value of its bitcoin on a nonrecurring basis in accordance with ASC 820, Fair Value Measurement, based on quoted prices on the active trading platform that the Company normally transacts and has determined is its principal market for bitcoin (Level 1 inputs), based on all information that is reasonably available. The Company performs an analysis each day to identify whether events or changes in circumstances, principally decreases in the quoted price of cryptocurrency on the active trading platform, indicate that it is more likely than not that its cryptocurrencies are impaired. For impairment testing purposes, the lowest intraday trading price of cryptocurrency is identified at the single cryptocurrency level. The excess, if any, of the carrying amount of cryptocurrency and the lowest daily trading price of cryptocurrency represents a recognized impairment loss. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of previously recorded impairment losses is prohibited. During the years ended December 31, 2021, 2022 and 2023, the Company recorded impairment on cryptocurrency of nil, US$7,880 and US$4,706, respectively.

The Company accounts for cryptocurrency received as customer deposits and liability to be settled in cryptocurrency at fair value of the underlying cryptocurrency with changes recorded in other income, net. As of December 31, 2022 and 2023, cryptocurrency received as customer deposits of nil and US$7,185 are recorded in accrued liabilities and other current liabilities, respectively. As of December 31, 2022 and 2023, liability to be settled in cryptocurrency of nil and nil are recorded in accounts payable, respectively.

Cryptocurrency awarded to the Company through its mining activities as well as in exchange for the sale of mining equipment are included as an adjustment to reconcile net loss to cash used in operating activities on the consolidated statements of cash flows. Proceeds from disposal of cryptocurrency are included within cash flows from investing activities on the consolidated statements of cash flows and any realized gains or losses from such disposals are included in general and administrative expenses on the consolidated statements of comprehensive income (loss).

Property, equipment and software

(k)

Property, equipment and software

Property, equipment and software are stated at historical cost less accumulated depreciation, amortization and impairment loss, if any. Depreciation and amortization is calculated using the straight-line method over the shorter of their estimated useful lives of these assets or the term of the related leases. The estimated useful lives are as follows:


Leasehold improvements		the shorter of their useful lives and the lease terms
Computers and electronic equipment		3 to 5 years
Mechanical equipment		5 years
Mining equipment		1.5 years
Motor vehicles		5 years
Software		3 years

Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property, equipment and software is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income (loss).

Construction in progress represents assets under construction. Construction in progress is transferred to property, equipment and software and depreciation or amortization commences when an asset is ready for its intended use.

Non-Current financial Investment

(l)

Non-current financial investment

The Company’s non-current financial investment include an equity investment without readily determinable fair value, and over which the Company has neither significant influence nor control through investments in common stock or in-substance common stock, and is measured and recorded using a measurement alternative that measures the non-current financial investment at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. The carrying values of the Company’s non-current financial investment without readily determinable fair values were US$2,872 and US$2,824 as of December 31, 2022 and 2023. No impairment loss was recognized for the three years ended December 31, 2023.

Impairment of long-lived assets

(m)

Impairment of long-lived assets

For other long-lived assets including property, equipment and software, the Company evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Company assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

During the year ended December 31, 2021, 2022 and 2023, the Company recognized impairment charge of nil, nil and US$21,126, respectively.

Contract liabilities

(n)

Contract liabilities

Cash proceeds received from customers before product delivery is recognized as contract liabilities and is recognized as revenues when revenue recognition criteria are met.

The prepayments received from customers as of December 31, 2022 and 2023 was US$662 and US$19,614, respectively and the significant increase was mainly due to increased payments received for the sales orders of mining equipment to be delivered in 2024. The revenue recognized during the years ended December 31, 2021, 2022 and 2023 for the beginning balance of contract liability was US$65,771, US$196,897 and US$380, respectively.

Revenue from contracts with customers (ASC 606)

(o)

Revenue from contracts with customers (ASC 606)

The Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services.

Products revenue

The Company generates revenue primarily from the sale of mining equipment directly to a customer, such as a business or individual engaged in Bitcoin mining activities. As the Bitcoin price fluctuates, the Company may adjust the selling price of mining equipment on a weekly basis, as customers are only willing to pay for machines based on their ability to recover their investment through mining Bitcoin over a relatively short period of time. The Company’s sales arrangements usually require a full prepayment before the delivery of products. The Company implemented an installment policy for certain significant, good-standing customers from 2023. The payment terms under installment policy generally consist of the installments over a period of 90 to 180 days.

Revenues from product sales are recorded at the sales price (transaction price). The amount of variable consideration is included in the transaction price to the extent it is not constrained and that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from the estimates. If actual results in the future vary from estimates, the Company will adjust these estimates, which would affect revenue and earnings in the period when such changes are known.

The Company recognizes products revenue at a point in time based on management’s evaluation of when the control of the products has been passed to customers. The transfer of control is considered complete when products have been picked up by or shipped to the Company’s customers.

The Company offers a standard product warranty of 360 days that the product will operate under normal use. At the time revenue is recognized, an estimate of future warranty costs is recorded as a component of cost of revenues. The reserves established are regularly monitored based upon historical experience and any actual claims charged against the reserve. The amount of total warranty costs incurred was US$4,467, US$1,896 and US$3,596 for the years ended December 31, 2021, 2022 and 2023, respectively.

Mining revenue

The Company entered into a Bitcoin mining pool by executing a contract, as amended from time to time, with a mining pool operator to perform hash calculations in exchange for consideration. Providing hash computation services to a mining pool is an output of the Company’s ordinary activities. The provision of such hash computation services is the sole performance obligation. The mining pool arrangement is terminable at any time without substantial penalty by the mining pool and may be terminated without substantial penalty by the Company upon providing one contract day’s prior written notice. The Company’s enforceable right to compensation only begins when and continues while the Company provides hash computation services to its customer, the mining pool operator. Accordingly, the contract term with the mining pool is deemed to be less than 24 hours and to continuously renew throughout the day. Additionally, the Company concluded that the mining pool operator’s renewal right is not a material right because the renewal rights do not include any discounts; that is, the terms, conditions, and compensation amounts are at the then-current market rates.

The Company is entitled to non-cash compensation based on the pool operator’s payout model. The payout methodologies differ depending on the type of third-party operated mining pool. Full-Pay-Per-Share (“FPPS”) pools pay block rewards and transaction fees, less mining pool fees and Pay-Per-Share (“PPS”) pools pay block rewards less mining pool fees but no transaction fees. For FPPS and PPS pools, the Company is entitled to non-cash consideration even if a block is not successfully validated by the mining pool operators.

The Company receives Bitcoin from mining operation, which is considered noncash and all variable. The fair value of the Bitcoin award received would generally be determined using the quoted price of Bitcoin in the Company’s principal market at the time of contract inception. The Company has adopted an accounting policy to aggregate individual contracts with individual terms less than 24 hours within each intraday period and apply a consistent valuation point, the start of day Coordinated Universal Time (00:00:00 UTC), to value the related noncash consideration. Revenue is recognized when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur, which is the same day that control of the contracted service transfers to the mining pool and is the same day as the contract inception. After every 24-hour contract term, the mining pool transfers the Bitcoin consideration to the Company’s designated Bitcoin currency wallets.

Consideration payable to the customer in the form of a pool operator fee, which is incurred only to the extent that the Company has generated consideration, is deducted from the bitcoin the Company receives and is recorded as contra - revenue, as it does not represent a payment for a distinct good or service.

Other revenues

The Company also generates a small portion of revenue from the leases of mining equipment and maintenance or development services under separate contracts. Revenue is recognized over the period when the related services were rendered to the customers.

Revenue from lease arrangements as lessor (ASC 842, Lease)

(p)

Revenue from lease arrangements as lessor (ASC 842, Lease)

From July 2019, the Company started to generate revenue from the leases of mining equipment for Bitcoin mining to its customers. The leases cannot generally be extended or terminated at the customer’s discretion. However, upon the mutual agreement of the parties, the leases can be early terminated after three months. Rental charges are computed based on a time rate of machine’s type and rental period. The leases of mining equipment meet the classification of operating leases, and revenues from operating leases are recognized on a straight-line basis over the contract terms. The Company ceased leasing mining equipment in the second quarter of 2021.

Value-added-tax ("VAT") recoverable and surcharges

(q)

Value-added-tax (“VAT”) recoverable and surcharges

Value added tax recoverable represent amounts paid by the Company for purchases. The surcharges (i.e., Urban construction and maintenance tax, educational surtax, local educational surtax), vary from 6% to 12% of the value-added-tax paid depending on the taxpayer’s location.

Cost of revenues

(r)

Cost of revenues

Amounts recorded as cost of revenues relate to direct expenses incurred to generate revenue. Such costs are recorded as incurred. Cost of revenues consists of product costs, mining costs and other costs. Product costs include costs of raw material, contractual manufacturers for production, labor costs, shipping and handling costs, manufacturing and depreciation, warehousing costs, inventories write-downs, prepayments write-downs, provision for reserve for inventory purchase commitments and tax surcharges. Mining costs include direct production costs of mining operations, including electricity and hosting, as well as depreciation of deployed mining machines. Other costs include labor costs and other service costs.

Research and development expenses

(s)

Research and development expenses

Research and development expenses consist primarily of salary and welfare for research and development personnel, consulting and contractor expenses, testing and tooling materials and other expenses in associated with research and development personnel. The Company recognizes research and development expenses as expense when incurred.

Sales and marketing expenses

(t)

Sales and marketing expenses

Sales and marketing expenses consist primarily of salary and welfare for sales and marketing personnel, promotion and marketing expenses and other expenses in association with sales and marketing personnel.

Advertising expense is expensed as incurred and included in selling and marketing expenses. The advertising expenses were US$691, US$964 and US$1,643 for the years ended December 31, 2021, 2022 and 2023, respectively.

General and administrative expenses

(u)

General and administrative expenses

General and administrative expenses consist primarily of salary and welfare for general and administrative personnel, rental expenses and depreciation in association with general and administrative personnel, allowance for doubtful receivables, entertainment expense, general office expense and professional service fees.

Government grants

(v)

Government grants

Government grants generally consist of financial subsidies received from local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. The eligibility to receive such benefits and amount of financial subsidy to be granted are determined at the discretion of the relevant government authorities.

Government grants are recognized when there are reasonable assurances that the Company will comply with the conditions attach to them and the grants are received. Government grants for the purpose of giving immediate financial support to the Company with no future related costs or obligation are recognized in the Company’s consolidated statements of comprehensive income (loss) when the grants are received. Government grants with conditions attached to them are recognized as liabilities when received, and will be released to the consolidated statements of comprehensive income (loss) when the Company is not subject to further obligation or future refunds.

US$883, US$2,861 and US$3,559 were recognized in other income, net for the years ended December 31, 2021, 2022, and 2023, respectively. Nil and US$9,191 were recognized in deferred government grant of accrued liabilities and other liabilities as of December 31, 2022 and 2023, respectively (Note 9).

Lease arrangement as lessee

(w)

Lease arrangement as lessee

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities, current, and operating lease liabilities, non-current in the Company’s consolidated balance sheets.

ROU assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which it calculates based on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease.

The Company has elected not to recognize operating lease right-of-use assets or operating lease liabilities for leases with an initial term of 12 months or less and the Company recognizes lease expense for these leases on a straight-line basis over the lease terms.

Employee social security and welfare benefits

(x)

Employee social security and welfare benefits

Employees of the Company in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated defined contribution plan. The Company is required to contribute to the plan based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government.

The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Company’s obligations are limited to the amounts contributed and no legal obligation beyond the contributions made. Employee social security and welfare benefits included as expenses in the consolidated statements of comprehensive income (loss) amounted to US$4,299, US$7,016 and US$9,561 for the years ended December 31, 2021, 2022 and 2023, respectively.

Income taxes

(y)

Income taxes

The Company accounts for income taxes under the liability method. Under the liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and income tax bases of assets and liabilities and are measured using the tax income rates that will be in effect when the differences are expected to reverse. A valuation allowance is recorded if it is more likely than not that some portion or all deferred income tax asset will not be realized in the foreseeable future.

The Company evaluates its uncertain tax positions using the provisions of ASC 740-10, Income Taxes, which prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements. The Company recognizes in the financial statements the benefit of a tax position which is “more likely than not” to be sustained under examination based solely on the technical merits of the position assuming a review by tax authorities having all relevant information. Tax positions that meet the recognition threshold are measured using a cumulative probability approach, at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. It is the Company’s policy to recognize interest and penalties related to unrecognized tax benefits, if any, as a component of income tax expense.

Share-based compensation

(z)

Share-based compensation

The Company grants restricted shares and share options to eligible employees and accounts for share-based compensation in accordance with ASC 718, Compensation—Stock Compensation.

Employees’ share-based compensation awards are measured at the grant date fair value of the awards and recognized as expenses a) immediately at the grant date if no vesting conditions are required; or b) for share-based awards granted with only service conditions, using the graded vesting method, over the vesting period; or c) for share-based awards with service conditions, using the graded vesting method, net of estimated pre-vesting forfeitures, over the vesting period. If the required vesting conditions are not met resulting in the forfeiture of the share-based awards, previously recognized compensation expense relating to those awards are reversed as occurred.

A change in any of the terms or conditions of share-based awards is accounted for as a modification of the awards. The Company calculates incremental compensation expense of a modification as the excess of the fair value of the modified awards over the fair value of the original awards immediately before its terms are modified at the modification date. For vested awards, the Company recognizes incremental compensation cost in the period when the modification occurs. For awards not being fully vested, the Company recognizes the sum of the incremental compensation expense and the remaining unrecognized compensation expense for the original awards over the remaining requisite service period after modification.

Share-based compensation in relation to the restricted shares is measured based on the fair market value of the Company’s ordinary shares at the grant date of the award. Share-based compensation in relation to the share options is estimated using the Binomial Model. The determination of the fair value of share options is affected by the share price of the Company’s ordinary shares as well as the assumptions regarding a number of complex and subjective variables, including the expected share price volatility, risk-free interest rate, exercise multiple and expected dividend yield. The fair value of these share options was determined by management with the assistance from an independent valuation firm.

Statutory reserves

(aa)

Statutory reserves

The Company’s subsidiaries incorporated in the PRC are required on an annual basis to make appropriations of retained earnings set at certain percentage of after-tax profit determined in accordance with PRC accounting standards and regulations (“PRC GAAP”).

Appropriation to the statutory general reserve should be at least 10% of the after tax net income determined in accordance with the legal requirements in the PRC until the reserve is equal to 50% of the entities’ registered capital. The Company is not required to make appropriation to other reserve funds and the Company does not have any intentions to make appropriations to any other reserve funds.

The general reserve fund can only be used for specific purposes, such as offsetting the accumulated losses, enterprise expansion or increasing the registered capital. Appropriations to the general reserve funds are classified in the consolidated balance sheets as statutory reserves.

There are no legal requirements in the PRC to fund these reserves by transfer of cash to restricted accounts, and the Company has not done so.

Relevant laws and regulations permit payments of dividends by the PRC subsidiaries and affiliated companies only out of their retained earnings, if any, as determined in accordance with respective accounting standards and regulations. Accordingly, the above balances are not allowed to be transferred to Canaan Inc. in terms of cash dividends, loans or advances.

The Company has made US$17, US$769 and nil appropriations to statutory reserve for the years ended December 31, 2021, 2022 and 2023, respectively.

Repurchase of share

(ab)

Repurchase of share

The Company accounts for treasury stock using the cost method. Under the cost method, when the Company’s shares are acquired for purposes other than retirement, the costs of the acquired stock will be shown separately as a deduction from the total of capital stock.

Earnings (loss) per share

(ac)

Earnings (loss) per share

Basic earnings (loss) per share is computed by dividing net income (loss) attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period.

Diluted earnings (loss) per share is calculated by dividing net income (loss) attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalents shares outstanding during the period. Dilutive equivalent shares are excluded from the computation of diluted earnings (loss) per share if their effects would be anti- dilutive. ordinary share equivalents consist of the ordinary shares issuable in connection with the Company’s ordinary shares issuable upon the conversion of the share-based awards, using the treasury stock method.

Comprehensive income (loss)

(ad)

Comprehensive income (loss)

Comprehensive income (loss) is defined as the change in shareholders’ equity of the Company during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders.

Comprehensive income (loss) is reported in the consolidated statements of comprehensive income (loss). Accumulated other comprehensive loss of the Company include the foreign currency translation adjustments.

Segment reporting

(ae)

Segment reporting

Operating segments are defined as components of an enterprise engaging in businesses activities for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision makers in deciding how to allocate resources and assess performance. The Company’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results including revenue, gross profit and operating profit at a consolidated level only. The Company does not distinguish between markets for the purpose of making decisions about resources allocation and performance assessment. Hence, the Company has only one operating segment and one reportable segment.

Long-lived assets consist of cryptocurrency, property, equipment and software, net, operating lease right-of-use assets and other non-current assets. As of December 31, 2023, the long-lived assets, net of US$9,266 were located in the United States, US$6,708 were located in Ethiopia and US$1,679 were located in Central Asia. The remaining long-lived assets were mainly located in PRC. The Company’s revenue segregated by geographic region is disclosed below.

The geographical region of revenue generated is based on the location where the customers based or the services were provided:


	For the Years Ended December 31,
Geographic region	2021	2022	2023
Mainland China	275,824	18,267	115,526
United States of America	48,461	93,921	28,101
Kazakhstan	110,272	57,546	24,571
Malaysia	—	119,337	15,326
Thailand	44,787	2,774	3,701
Indonesia	—	215,198	300
Canada	62,371	18,271	259
Australia	56,001	60,379	9
Cyprus	98,142	36,230	7
Other countries or regions	76,904	29,603	23,677
Total	772,762	651,526	211,477

Recently issued accounting pronouncements

(af)

Recently issued accounting pronouncements

New and amended standards adopted by the Company:

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 was further amended in November 2018 by ASU 2018-19 and in November 2019 by ASU 2019-10. All guidance is collectively referred to as “ASC326”. This guidance requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The measurement of expected credit losses is based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability. The guidance is effective for public business entities, excluding entities eligible to be smaller reporting companies as defined by the SEC for annual reporting periods, and interim periods within those years beginning after December 15, 2019. For all other entities, it is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. As the Company is an “emerging growth company” and elects to apply for the new and revised accounting standards at the effective date for a private company, ASC326 has been applied for the year beginning on January 1, 2023. The adoption of this standard did not have a material effect on the Company’s consolidated financial statements.

ii.

New and amended standards not yet adopted by the Company:

In August 2020, the FASB issued Accounting Standards Update 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. The amendments in ASU 2020-06 are effective for public business entities, excluding entities eligible to be smaller reporting companies as defined by the SEC, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. ASU 2020-06 is effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. As the Company is an “emerging growth company” and elects to apply for the new and revised accounting standards at the effective date for a private company. The Company adopted ASU 2020-06 for the year beginning on January 1, 2024 and does not expect the adoption of this standard to have a material effect on the Company’s consolidated financial statements.

On December 13, 2023, the FASB issued ASU No. 2023-08, Intangibles - Goodwill and Other - Crypto Assets (Topic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”). ASU 2023-08 requires entities to measure crypto assets that meet specific criteria at fair value with changes recognized in net income each reporting period. Additionally, ASU 2023-08 requires an entity to present crypto assets measured at fair value separately from other intangible assets in the balance sheets and record changes from remeasurement of crypto assets separately from changes in the carrying amounts of other intangible assets in the income statement. The new standard is effective for the Company for its fiscal year beginning January 1, 2025, with early adoption permitted, and should be applied using a modified retrospective transition method with a cumulative-effect adjustment recorded to the opening balance of retained earnings as of the beginning of the year of adoption. The Company early adopted ASU 2023-08 on January 1, 2024, which has a cumulative adjustment to increase the opening balance of retained earnings by US$18,723.

In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 expands existing income tax disclosures for rate reconciliations by requiring disclosure of certain specific categories and additional reconciling items that meet quantitative thresholds and expands disclosures for income taxes paid by requiring disaggregation by certain jurisdictions. ASU 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024, and interim periods within those annual periods; early adoption is permitted. The Company plans to adopt ASU 2023-09 for the year beginning on January 1, 2025 and does not expect the updated guidance to have a material impact on its disclosures.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 is intended to enhance reportable segment disclosures by requiring disclosures of significant segment expenses regularly provided to the CODM, requiring disclosure of the title and position of the CODM and explanation of how the reported measures of segment profit and loss are used by the CODM in assessing segment performance and allocation of resources. ASU 2023-07 is effective for all public entities for annual periods beginning after December 31, 2023; early adoption is permitted. The Company adopted ASU 2023-07 for the year beginning on January 1, 2024 and does not expect the updated guidance to have a material impact on its disclosures.

Series A Convertible Preferred Shares - First Tranche and Second Tranche of Series A Convertible Preferred Shares (Details) - USD ($) $ / shares in Units, $ in Thousands				12 Months Ended
	Dec. 11, 2023	Nov. 27, 2023	May 03, 2021	Dec. 31, 2023
Series A Convertible Preferred Shares
Net proceeds				$ 24,575
Fixed monetary amount per share				$ 1.81
Percentage of lowest daily average market price				92.50%
Number of days preceding the conversion considered for lowest daily average market price				5 days
Minimum
Series A Convertible Preferred Shares
Preferred stock conversion price				$ 1.06
Maximum
Series A Convertible Preferred Shares
Preferred stock conversion price				$ 1.42
ADS
Series A Convertible Preferred Shares
Number of shares issued			4,047,620
Preferred Shares
Series A Convertible Preferred Shares
Number of shares issuable		125,000
Issue price per share		$ 1,000
Net proceeds	$ 24,575			$ 24,575
Redemption price on percentage of conversion amount		105.00%
Maturity term of preferred shares		12 months
Preferred Shares \| ADS
Series A Convertible Preferred Shares
Per share preferred stock convertible conversion ratio		$ 1,072.80
Fixed monetary amount per share		$ 1.81
Unpaid dividend in percentage		15.00%
Percentage of weighted average price		120.00%
Percentage of lowest daily average market price		92.50%
Number of days preceding the conversion considered for lowest daily average market price		5 days
First Tranche Preferred Shares Financing
Series A Convertible Preferred Shares
Number of shares issued	25,000	25,000
First Tranche Preferred Shares Financing \| Class A ordinary shares
Series A Convertible Preferred Shares
Number of shares converted				354,751,230
First Tranche Preferred Shares Financing \| ADS
Series A Convertible Preferred Shares
Number of shares converted				23,650,082
Second Tranche Of The Preferred Shares Financing \| Minimum
Series A Convertible Preferred Shares
Number of shares issued		25,000
Second Tranche Of The Preferred Shares Financing \| Maximum
Series A Convertible Preferred Shares
Number of shares issued		50,000
Pre-delivery Shares
Series A Convertible Preferred Shares
Price of nominal fee received				$ 6.00
Pre-delivery Shares \| Class A ordinary shares
Series A Convertible Preferred Shares
Number of shares issued	120,000,000	120,000,000
Pre-delivery Shares \| ADS
Series A Convertible Preferred Shares
Number of shares issued	8,000,000	8,000,000

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Ordinary shares	Treasury stocks	Additional paid-in capital	Statutory reserves	Accumulated other comprehensive loss	Retained earnings (accumulated deficit)	Total
Beginning balance at Dec. 31, 2020		$ (3,570)	$ 235,007	$ 14,106	$ (5,922)	$ (173,326)	$ 66,295
Beginning balance (in shares) at Dec. 31, 2020	2,328,326,132	43,896,090
Share Repurchase		$ (16,106)					(16,106)
Share Repurchase (in shares)	(34,683,225)	34,683,225
Repurchase of vested employee restricted share units for tax withholding		$ (23,353)					(23,353)
Repurchase of vested employee restricted share units for tax withholding (in shares)	(33,255,495)	33,255,495
Resale of vested employee restricted share units for tax withholding		$ 7,264				(178)	7,086
Resale of vested employee restricted share units for tax withholding (in shares)	13,043,895	(13,043,895)
Share-based compensation expense			76,497				76,497
Vesting of restricted share units			13				13
Vesting of restricted share units (in shares)	101,574,270	(101,574,270)
New issuance of ordinary shares and warrants			117,688				117,688
New issuance of ordinary shares and warrants (in shares)	202,380,975	70,833,345
Issuance of ordinary shares as a reserve for share-based compensation awards (in shares)		158,701,950
Profit appropriations to statutory reserves				17		(17)
Foreign currency translation					5,276		5,276
Net loss						309,086	309,086
Ending balance at Dec. 31, 2021		$ (35,765)	429,205	14,123	(646)	135,565	542,482
Ending balance (in shares) at Dec. 31, 2021	2,577,386,552	226,751,940
Share Repurchase		$ (37,379)					(37,379)
Share Repurchase (in shares)	(154,614,975)	154,614,975
Repurchase of vested employee restricted share units for tax withholding		$ (4,819)					(4,819)
Repurchase of vested employee restricted share units for tax withholding (in shares)	(17,102,175)	17,102,175
Resale of vested employee restricted share units for tax withholding		$ 20,908				(10,158)	10,750
Resale of vested employee restricted share units for tax withholding (in shares)	37,313,775	(37,313,775)
Share-based compensation expense			63,015				63,015
Vesting of restricted share units (in shares)	53,018,580	(53,018,580)
Profit appropriations to statutory reserves				769		(769)
Foreign currency translation					(36,267)		(36,267)
Net loss						69,884	69,884
Ending balance at Dec. 31, 2022		$ (57,055)	492,220	14,892	(36,913)	194,522	$ 607,666
Ending balance (in shares) at Dec. 31, 2022	2,496,001,757	308,136,735					2,496,001,757
Repurchase of vested employee restricted share units for tax withholding		$ (2,420)					$ (2,420)
Repurchase of vested employee restricted share units for tax withholding (in shares)	(13,904,625)	13,904,625
Resale of vested employee restricted share units for tax withholding		$ 2,420					2,420
Resale of vested employee restricted share units for tax withholding (in shares)	13,904,625	(13,904,625)
Share-based compensation expense			42,074				42,074
Vesting of restricted share units (in shares)	51,031,395	(51,031,395)
Profit appropriations to statutory reserves				0
Foreign currency translation					(6,966)		(6,966)
Issuance of ordinary shares in at-the-market offering, net of offering cost			65,430				65,430
Issuance of ordinary shares in at-the-market offering, net of offering cost (in shares)	493,188,945
Issuance of ordinary shares pursuant to preferred shares financing, net of offering cost			53,625				53,625
Issuance of ordinary shares pursuant to preferred shares financing, net of offering cost (in shares)	354,751,230
Issuance of ordinary shares pursuant to share lending arrangement			511				511
Issuance of ordinary shares pursuant to share lending arrangement (in shares)	120,000,000
Net loss						(414,153)	(414,153)
Ending balance at Dec. 31, 2023		$ (57,055)	$ 653,860	$ 14,892	$ (43,879)	$ (219,631)	$ 348,187
Ending balance (in shares) at Dec. 31, 2023	3,514,973,327	257,105,340					3,514,973,327

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities
Net income (loss)	$ (414,153)	$ 69,884	$ 309,086
Adjustments for:
Revenue recognized on acceptance of cryptocurrency	(58,959)	(35,500)	(3,361)
Cost recognized on payment of cryptocurrency	8,854	8,463
Receipt of cryptocurrency as customer deposits	(4,922)
Realised gain (loss) on sale of cryptocurrency	(6,135)	170
Depreciation and amortization of property, equipment and software	59,641	33,689	1,706
Depreciation of operating lease assets			483
Foreign exchange gain	(9,302)	(2,007)	(2,233)
Provision of allowance for doubtful receivables	14	13	143
Deferred income tax benefits	(45,686)	(7,791)	(15,348)
Loss on disposal of property, equipment and software	18	193	7
Share-based compensation expense	42,074	63,015	76,497
Change in fair value of financial instruments	10,918	(3,795)	(29,471)
Excess of fair value of Series A Convertible Preferred Shares	59,199
Investment income			(44)
Reduction in the carrying amount of the operating lease right-of-use assets	2,481	2,254	2,758
Interest of operating lease liabilities	115	193	253
Impairment charge to non-current financial investment			4
Impairment loss of cryptocurrency	4,706	7,880	175
Impairment loss of property, equipment and software	21,126	0	0
Write-down of inventories	174,838	69,524	7,859
Write-downs of prepayments	5,627	12,828	0
Provision for reserve for inventory purchase commitments	9,816	10,890
Changes in assets and liabilities:
Accounts receivable	(3,011)	58	1,059
Inventories	(123,679)	(232,165)	(116,153)
Prepayments and other current assets	122,471	(70,304)	(188,929)
Other non-current assets	2,008	(2,032)	(62)
Prepaid interest expense			39
Accounts payable	(10,237)	47,259	(7,501)
Notes payable			(2,140)
Contract liabilities	19,026	(198,733)	132,414
Income tax payable	(3,596)	(14,653)	21,580
Accrued liabilities and other current liabilities	6,332	60,294	17,031
Other non-current liabilities	9,161	(315)	(316)
Operating lease liabilities	(2,365)	(1,914)	(3,253)
Net cash provided by (used in) operating activities	(123,620)	(182,602)	202,283
Cash flows from investing activities:
Proceeds from disposal of short-term investments			9,605
Purchase of property, equipment and software	(3,312)	(17,745)	(5,645)
Proceeds from disposal of property, equipment and software	2,295		25
Proceeds from disposal of cryptocurrency	40,645	9,642
Payment for non-current financial investments			(3,137)
Net cash provided by (used in) investing activities	39,628	(8,103)	848
Cash flows from financing activities:
Payment for repurchase of ordinary shares		(37,379)	(16,106)
Prepayment under share repurchase agreement			(89)
Repurchase of warrants		(6,611)
Proceeds from issuance of ordinary shares, net of issuance costs under At-the-Market Offering Agreements	65,430
Payment for cost of issuance			(879)
Proceeds from issuance of series A convertible preferred shares, net of issuance costs	24,575
Repayment of borrowings			(5,490)
Proceeds from resale of treasury stock	2,420	10,397	6,992
Repurchase for tax withholdings on vesting of restricted share units	(2,420)	(22,585)	(3,844)
Proceeds from issuance of ordinary shares and warrants			158,634
Net cash provided by (used in) financing activities	90,005	(56,178)	139,218
Net increase (decrease) in cash and restricted cash	6,013	(246,883)	342,349
Effect of exchange rate changes on cash and restricted cash	(11,410)	(80,021)	25,445
Cash and restricted cash at the beginning of year	101,551	428,455	60,661
Cash and restricted cash at the end of year	96,154	101,551	428,455
Cash	96,154	101,551	421,027
Restricted cash			7,428
Total cash and restricted cash shown in the statement of cash flows	96,154	101,551	428,455
Supplemental disclosure of cash flow information:
Cash paid for interest			39
Cash paid for income tax	2,876	45,421	68
Supplemental disclosure of non-cash investing and financing activities:
Transfer from inventory to operating lease assets			2,379
Transfer from operating lease assets to inventory			1,890
Mining equipment transfer from inventory to property, equipment and software	24,052	69,712	23,038
Purchases of property, plant and equipment in accrued liabilities and other current liabilities		6,362
Accrued tax withholdings on vesting of restricted share units	2,420	(4,465)	19,794
Revenue recognized on acceptance of cryptocurrency	58,959	35,500	$ 3,361
Cost recognized on payment of cryptocurrency	8,854	$ 8,463
Conversion of series A convertible preferred shares into Class A ordinary shares	$ 53,837

Ordinary shares - Additional Information (Details) - USD ($) $ in Thousands		12 Months Ended
	May 03, 2021	Dec. 31, 2023	Nov. 24, 2023	Nov. 10, 2023	Dec. 31, 2022	Jan. 01, 2021
Ordinary shares
Ordinary shares, shares authorized		999,999,875,000			1,000,000,000,000	1,000,000,000,000
Ordinary shares, shares issued		3,772,078,667			2,804,138,492	2,372,222,222
Issuance of ordinary shares		$ 65,430
Fair value of the warrant liability	$ 39,877
Proceeds from Issuance of Common Stock		$ 65,430
Residual proceeds of warrants allocated to ordinary shares	$ 118,757
Common stock shares outstanding		3,514,973,327			2,496,001,757	2,328,326,132
ADS
Ordinary shares
Issuance of ordinary shares (in shares)	4,047,620
Class of warrant or right, number of securities called by warrants or rights	674,603
Class A ordinary shares
Ordinary shares
Common stock vote per share		one vote
Issuance of ordinary shares	$ 158,634
Class of warrant or right, number of securities called by warrants or rights	10,119,045
Common stock shares outstanding						2,016,701,688
Class B Ordinary Shares
Ordinary shares
Common stock vote per share		fifteen votes
Class B Ordinary Shares \| Chairman and CEO
Ordinary shares
Common stock shares outstanding						311,624,444
Institutional Investors \| ADS
Ordinary shares
Issuance of ordinary shares (in shares)	13,492,065
Institutional Investors \| Class A ordinary shares
Ordinary shares
Issuance of ordinary shares (in shares)	202,380,975
Class of warrant or right, number of securities called by warrants or rights	60,714,300
At-the-Market Offering Agreements
Ordinary shares
Ordinary shares, shares authorized		999,999,875,000
Ordinary shares, shares issued		3,772,078,667
Proceeds from Issuance of Common Stock		$ 4,188
Common stock shares outstanding		3,514,973,327
At-the-Market Offering Agreements \| ADS
Ordinary shares
Issuance of ordinary shares (in shares)		1,532,219
At-the-Market Offering Agreements \| Class A ordinary shares
Ordinary shares
Issuance of ordinary shares (in shares)		22,983,285
Common stock shares outstanding		3,203,348,883
At-the-Market Offering Agreements \| Class B Ordinary Shares
Ordinary shares
Common stock shares outstanding		311,624,444
At-the-Market Offering Agreements \| Series A Convertible Preferred Shares
Ordinary shares
Preferred shares, shares authorized			125,000
At Market Issuance Sales Agreement
Ordinary shares
Proceeds from Issuance of Common Stock		$ 61,242
At Market Issuance Sales Agreement \| ADS
Ordinary shares
Issuance of ordinary shares (in shares)		31,347,044
At Market Issuance Sales Agreement \| ADS \| Maximum
Ordinary shares
Issuance for sale of shares				$ 68,000
At Market Issuance Sales Agreement \| Class A ordinary shares
Ordinary shares
Issuance of ordinary shares (in shares)		470,205,660

Risks and concentration - Additional information (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Risks and concentration
Accounts receivable current	$ 2,997
Concentration of credit risk
Risks and concentration
Accounts receivable current	$ 2,997	$ 0

Condensed Financial Information of the Parent Company - Schedule of Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Prepayments and other current assets	$ 122,242	$ 242,523
Total current assets	363,680	555,714
Total assets	493,297	684,961
Current liabilities:
Series A convertible preferred shares forward purchase liabilities	40,344
Non-current liabilities:
Refund from depository bank - non-current	516	598
Total liabilities	145,110	77,295
Shareholders' equity:
Treasury stocks	(57,055)	(57,055)
Additional paid-in capital	653,860	492,220
Statutory reserves	14,892	14,892
Accumulated other comprehensive loss	(43,879)	(36,913)
Retained earnings (accumulated deficit)	(219,631)	194,522
Total shareholders' equity	348,187	607,666	$ 542,482	$ 66,295
Total liabilities and shareholders' equity	493,297	684,961
Parent Company
Current assets:
Cash	6,902	5,682
Prepayments and other current assets	644	180
Total current assets	7,546	5,862
Investments in and receivables from subsidiaries	382,605	602,798
Total assets	390,151	608,660
Current liabilities:
Series A convertible preferred shares forward purchase liabilities	40,344
Refund from depository bank - current	580	316
Other payable	524	80
Non-current liabilities:
Refund from depository bank - non-current	516	598
Total liabilities	41,964	994
Shareholders' equity:
Treasury stocks	(57,055)	(57,055)
Additional paid-in capital	653,860	492,220
Statutory reserves	14,892	14,892
Accumulated other comprehensive loss	(43,879)	(36,913)
Retained earnings (accumulated deficit)	(219,631)	194,522
Total shareholders' equity	348,187	607,666
Total liabilities and shareholders' equity	$ 390,149	$ 608,660

Basic and Diluted Earnings (Loss) Per Share - Effects of Outstanding RSUs Excluded From Computation of Diluted Loss Per Share Due to Anti-Dilutive Effect (Details) - shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Weighted-average RSUs
Basic and diluted earnings (loss) per share
Weighted-average of shares	30,741,795	0	0
Share options
Basic and diluted earnings (loss) per share
Weighted-average of shares	144,000,000	114,000,000	114,000,000
Warrants
Basic and diluted earnings (loss) per share
Weighted-average of shares	0	0	70,833,345

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustment, tax	$ 0	$ 0	$ 0

Subsequent Events

12 Months Ended

Dec. 31, 2023

Subsequent Events [Abstract]

Subsequent Event

18.	Subsequent events

On January 22, 2024, pursuant to the Securities Purchase Agreement, the Company closed the second tranche of the preferred shares financing (the “Second Tranche Preferred Shares Financing”) and issued 50,000 Preferred Shares in total at the price of US$1,000 per Preferred Share, raising total net proceeds of US$49,860. As of the date of the report, 45,000 Preferred Shares issued pursuant to the Second Tranche Preferred Shares Financing were converted to outstanding ADSs.

In connection with the issuance of the Preferred Shares, the Company also delivered additional 2,800,000 ADSs (42,000,000 Class A ordinary shares) as pre-delivery shares.

Prepayments and other assets - Summary of Prepayments and other assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Prepayments and other current assets
Prepayments to vendors (Note a)	$ 46,277	$ 158,687
VAT recoverable and refund	55,403	72,402
Deferred charges	7,546	6,166
Deposits	3,746	3,329
Prepayment for repurchase of ordinary shares		3
Others (Note b)	9,270	1,936
Total	122,242	242,523
Other non-current assets
Long-term rental and other deposits	486	2,448
Prepayments for purchase of software		56
Total	$ 486	$ 2,504

Series A Convertible Preferred Shares - Significant assumptions (Details)	Dec. 31, 2023	Dec. 21, 2023	Dec. 11, 2023
Discount Rate
Significant assumptions
Measurement input	5.14		4.98
First Tranche Preferred Shares Financing \| Risk Free Rate \| Level 3 \| Minimum
Significant assumptions
Measurement input		4.69	4.98
First Tranche Preferred Shares Financing \| Risk Free Rate \| Level 3 \| Maximum
Significant assumptions
Measurement input		4.81
First Tranche Preferred Shares Financing \| Volatility \| Level 3
Significant assumptions
Measurement input			100.55
First Tranche Preferred Shares Financing \| Volatility \| Level 3 \| Minimum
Significant assumptions
Measurement input		96.00
First Tranche Preferred Shares Financing \| Volatility \| Level 3 \| Maximum
Significant assumptions
Measurement input		103.81
First Tranche Preferred Shares Financing \| Expected dividend yield \| Level 3
Significant assumptions
Measurement input			7.83
First Tranche Preferred Shares Financing \| Expected dividend yield \| Level 3 \| Minimum
Significant assumptions
Measurement input		7.37
First Tranche Preferred Shares Financing \| Expected dividend yield \| Level 3 \| Maximum
Significant assumptions
Measurement input		7.48

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets
Tax losses carried forward	$ 57,519	$ 10,290
Write-down of inventories	26,608	15,540
Property, equipment and software	6,597	5,012
Share-based compensation	5,646	4,427
Warranty reserve	281	139
Operating lease right-of-use assets	260	0
Allowance for doubtful accounts	200	203
Total gross deferred tax assets	97,111	35,611
Less: Valuation allowance	(30,042)	(13,871)	$ (2,821)	$ (46,712)
Deferred tax assets, net of valuation allowance	67,069	21,740
Deferred tax liabilities
Operating lease liabilities	(260)	0
Total gross deferred tax liabilities	(260)	0
Net deferred tax assets	$ 66,809	$ 21,740

Warrants

12 Months Ended

Dec. 31, 2023

Warrants

Warrants

10.

Warrants

In connection with the issuance of ordinary shares (Note 11) in May 2021, the Company also issued warrants to the investors, which entitle the investors to purchase up to an aggregate of 4,047,620 ADS (representing 60,714,300 Class A ordinary Shares) at $16.38 per ADS (representing $1.09 Class A ordinary share). Also, the Company issued warrants to two placement agents, which entitle them to purchase up to an aggregate of 674,603 ADSs (representing 10,119,045 Class A ordinary shares) at $15.75 per ADS (representing $1.05 Class A ordinary share).

The warrants are accounted for as a liability and remeasured to fair value at the end of each reporting period utilizing the binomial option pricing model, which involves significant assumptions including the risk-free interest rate, the expected volatility, expected dividend yield and expected term, the Company classifies the valuation techniques that use these inputs as Level 3.


			Fair Value at
	Fair Value at		June 23, 2022
	December 31, 2021		(remeasurement date)
Risk Free Rate	0.37%-0.81	%	2.32%-2.63	%
Volatility	131.47%-127.93	%	126.66%-140.39	%
Expected dividend yield	0	%	0	%
Expected term	2.3 years-3 years		1.9 years-2.1 years

On June 23, 2022, the Company entered into separate warrant repurchase agreements with all warrant holders. The Company paid US$6.6 million (US$1.4 per ADS) to repurchase the outstanding warrants of 4,722,223 ADSs (representing 70,833,345 Class A ordinary shares), upon which the warrant liability was extinguished.

Movement of warrant liability for the year ended December 31, 2022 is as follows:


		For the years ended December 31,
		2022
Beginning balance		10,406
Issuance of warrant		—
Change in fair value of financial instruments		(3,795)
Repurchase of warrant liability		(6,611)
Ending balance		—

Summary of significant accounting policies - Summary of Revenue Segregated by Geographic Region (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Summary of significant accounting policies
Total net revenues	$ 211,477	$ 651,526	$ 772,762
Mainland China
Summary of significant accounting policies
Total net revenues	115,526	18,267	275,824
United States of America
Summary of significant accounting policies
Total net revenues	28,101	93,921	48,461
Kazakhstan
Summary of significant accounting policies
Total net revenues	24,571	57,546	110,272
Malaysia
Summary of significant accounting policies
Total net revenues	15,326	119,337
Thailand
Summary of significant accounting policies
Total net revenues	3,701	2,774	44,787
Indonesia
Summary of significant accounting policies
Total net revenues	300	215,198
Canada
Summary of significant accounting policies
Total net revenues	259	18,271	62,371
Australia
Summary of significant accounting policies
Total net revenues	9	60,379	56,001
Cyprus
Summary of significant accounting policies
Total net revenues	7	36,230	98,142
Other countries or regions
Summary of significant accounting policies
Total net revenues	$ 23,677	$ 29,603	$ 76,904

Cryptocurrency (Tables)

12 Months Ended

Dec. 31, 2023

Cryptocurrency.

Schedule of cryptocurrency


	As of December 31
	2022	2023
Gross carrying amount	15,076	32,603
Less: Impairment of cryptocurrency	(2,545)	(4,261)
Net	12,531	28,342

Schedule of additional information about cryptocurrency


	For the years ended December 31,
	2022	2023
Beginning balance	3,186	12,531
Revenue recognized on acceptance of cryptocurrency	35,500	58,959
Receipt of cryptocurrency as customer deposits	—	4,922
Cost of revenues recognized on payment of cryptocurrency	(8,463)	(8,854)
Proceeds from disposal of cryptocurrency	(9,642)	(40,645)
Realized (gain)loss on disposal of cryptocurrency	(170)	6,135
Impairment of cryptocurrency	(7,880)	(4,706)
Ending balance	12,531	28,342

Property, equipment and software, net (Tables)

12 Months Ended

Dec. 31, 2023

Property, equipment and software, net

Schedule of property, equipment and software


	As of December 31,
	2022	2023
Cost:
Mining equipment	102,964	95,215
Computers and electronic equipment	10,008	10,940
Leasehold improvements	4,805	5,772
Mechanical equipment	123	114
Software	2,360	3,283
Motor vehicles	78	243
Total cost	120,338	115,567
Less: Accumulated depreciation and amortization	(34,988)	(86,101)
Property, equipment and software, net	85,350	29,466

Schedule of depreciation and amortization expenses


	For the Years Ended December 31,
	2021	2022	2023
Cost of revenues	266	31,002	54,478
Research and development expenses	438	900	400
Sales and marketing expenses	4	8	36
General and administrative expenses	998	1,779	4,727
Total	1,706	33,689	59,641

Warrants - Movement of warrant liability (Details) - Warrant liability $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Movement of warrant liability
Beginning balance	$ 10,406
Change in fair value of warrant liability	(3,795)
Repurchase of warrant liability	$ (6,611)

Warrants - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Jun. 23, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	May 31, 2021	May 03, 2021
Warrants
Payments for repurchase of warrants			$ 6,611
Change in fair value of financial instruments		$ (10,918)	$ 3,795	$ 29,471
ADR [Member]
Warrants
Class of warrant or right, number of securities called by warrants or rights						674,603
ADR [Member] \| Warrants \| Separate warrant repurchase agreements
Warrants
Price paid per share	$ 1.4
Shares outstanding	4,722,223
Class A ordinary shares
Warrants
Class of warrant or right, number of securities called by warrants or rights						10,119,045
Class A ordinary shares \| Warrants
Warrants
Class of warrant or right, exercise price of warrants or rights					$ 1.05
Class A ordinary shares \| Warrants \| Separate warrant repurchase agreements
Warrants
Shares outstanding	70,833,345
Tranche One \| ADR [Member] \| Warrants To Purchase Common Stock
Warrants
Class of warrant or right, exercise price of warrants or rights					16.38
Tranche One \| Class A ordinary shares \| Warrants To Purchase Common Stock
Warrants
Class of warrant or right, exercise price of warrants or rights					1.09
Tranche Two \| ADR [Member] \| Warrants
Warrants
Class of warrant or right, exercise price of warrants or rights					$ 15.75
Tranche Two \| ADR [Member] \| Warrants To Purchase Common Stock
Warrants
Class of warrant or right, number of securities called by warrants or rights					674,603
Tranche Two \| Class A ordinary shares \| Warrants To Purchase Common Stock
Warrants
Class of warrant or right, number of securities called by warrants or rights					10,119,045
Investor Warrants \| Tranche One \| Warrants \| Separate warrant repurchase agreements
Warrants
Payments for repurchase of warrants	$ 6,600
Investor Warrants \| Tranche One \| ADR [Member] \| Warrants To Purchase Common Stock
Warrants
Class of warrant or right, number of securities called by warrants or rights					4,047,620
Investor Warrants \| Tranche One \| Class A ordinary shares \| Warrants To Purchase Common Stock
Warrants
Class of warrant or right, number of securities called by warrants or rights					60,714,300

Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows from operating leases	$ 2,356	$ 2,944	$ 3,253
Operating lease right-of-use assets obtained in exchange for lease obligations:
Operating leases	2,358	2,398	5,752
Operating lease liability settled through termination of lease: Operating leases
Operating leases	$ 2,301	$ 358	$ 406

Condensed Financial Information of the Parent Company - Schedule of Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities
Net cash used in operating activities	$ (123,620)	$ (182,602)	$ 202,283
Cash flows from investing activities
Net cash provided by (used in) investing activities	39,628	(8,103)	848
Cash flows from financing activities
Repurchase of warrants		6,611
Payment for repurchase of ordinary shares		(37,379)	(16,106)
Proceeds from issuance of ordinary shares and warrants			158,634
Proceeds from issuance of ordinary shares, net of issuance costs under At-the-Market Offering Agreements	65,430
Proceeds from issuance of series A convertible preferred shares, net of issuance costs	24,575
Net cash provided by (used in) financing activities	90,005	(56,178)	139,218
Net increase in cash	6,013	(246,883)	342,349
Effect of exchange rate changes on cash	(11,410)	(80,021)	25,445
Cash and restricted cash at the beginning of year	101,551	428,455	60,661
Cash and restricted cash at the end of year	96,154	101,551	428,455
Parent Company
Cash flows from operating activities
Receipt of refund from depository bank	520	0	0
Other cash used in operating activities	(4,459)	(3,078)	(1,014)
Net cash used in operating activities	(3,939)	(3,078)	(1,014)
Cash flows from investing activities
Decrease (increase) in receivables from subsidiaries	(84,760)	43,869	(136,643)
Net cash provided by (used in) investing activities	(84,760)	43,869	(136,643)
Cash flows from financing activities
Repurchase of warrants	0	(6,358)	0
Payment for repurchase of ordinary shares	0	(33,643)	(16,240)
Prepayment under share repurchase agreement	0	0	(90)
Payment for cost of issuance	0	0	(81)
Proceeds from issuance of ordinary shares and warrants	0	0	158,634
Proceeds from issuance of ordinary shares, net of issuance costs under At-the-Market Offering Agreements	65,430	0	0
Proceeds from issuance of series A convertible preferred shares, net of issuance costs	24,575	0	0
Net cash provided by (used in) financing activities	90,005	(40,001)	142,223
Net increase in cash	1,306	790	4,566
Effect of exchange rate changes on cash	(86)	52	251
Cash and restricted cash at the beginning of year	5,682	4,840	23
Cash and restricted cash at the end of year	$ 6,902	$ 5,682	$ 4,840

Risks and concentration (Details)	12 Months Ended
Risks and concentration (Details)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Concentration of credit risk \| Accounts receivable \| Customer A
Risks and concentration
Concentration risk, percentage	97.00%
Customer concentration risk \| Total revenue \| Customer B
Risks and concentration
Concentration risk, percentage		33.00%
Customer concentration risk \| Total revenue \| Customer C
Risks and concentration
Concentration risk, percentage		22.00%	18.00%
Customer concentration risk \| Total revenue \| Customer D
Risks and concentration
Concentration risk, percentage		16.00%
Customer concentration risk \| Total revenue \| Customer E
Risks and concentration
Concentration risk, percentage	14.00%

Cryptocurrency - Schedule of Cryptocurrency (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Cryptocurrency.
Gross carrying amount	$ 32,603	$ 15,076
Less: Impairment of cryptocurrency	(4,261)	(2,545)
Net	$ 28,342	$ 12,531

Summary of significant accounting policies - Summary of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2023
Deposits with signature bank
Disclosure Of Significant Accounting Policies [Line Items]
Cash deposits	$ 1,100
China
Disclosure Of Significant Accounting Policies [Line Items]
Cash and cash equivalents, at carrying value	72,853	$ 47,300
Overseas
Disclosure Of Significant Accounting Policies [Line Items]
Cash and cash equivalents, at carrying value	101,551	96,154
RMB \| China
Disclosure Of Significant Accounting Policies [Line Items]
Cash and cash equivalents, at carrying value	11,109	10,098
RMB \| Overseas
Disclosure Of Significant Accounting Policies [Line Items]
Cash and cash equivalents, at carrying value	8	7
US dollar \| China
Disclosure Of Significant Accounting Policies [Line Items]
Cash and cash equivalents, at carrying value	61,742	37,170
US dollar \| Overseas
Disclosure Of Significant Accounting Policies [Line Items]
Cash and cash equivalents, at carrying value	26,334	46,522
Other Currency \| China
Disclosure Of Significant Accounting Policies [Line Items]
Cash and cash equivalents, at carrying value	2	32
Other Currency \| Overseas
Disclosure Of Significant Accounting Policies [Line Items]
Cash and cash equivalents, at carrying value	$ 2,356	$ 2,325

Summary of significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2023

Summary of significant accounting policies

Schedule of assets and liabilities measured at fair value on a recurring basis


				Fair value at
				December
As of December 31, 2023	Level 1	Level 2	Level 3	31, 2023
Liabilities
Preferred shares forward contract liability	—	—	40,344	40,344

Schedule of cash and cash equivalents

Cash represents bank deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal or use.


	As of December 31,
	2022	2023
RMB denominated bank deposits with financial institutions in the PRC	11,109	10,098
US dollar denominated bank deposits with financial institutions in the PRC	61,742	37,170
Others denominated bank deposits with financial institutions in the PRC	2	32
Subtotal	72,853	47,300
US dollar denominated bank deposits with overseas financial institutions	26,334	46,522
RMB denominated bank deposits with overseas financial institutions	8	7
Others denominated bank deposits with overseas financial institutions	2,356	2,325
Total	101,551	96,154

Schedule of estimated useful lives

The estimated useful lives are as follows:


Leasehold improvements		the shorter of their useful lives and the lease terms
Computers and electronic equipment		3 to 5 years
Mechanical equipment		5 years
Mining equipment		1.5 years
Motor vehicles		5 years
Software		3 years

Schedule of revenue segregated by geographic region

The geographical region of revenue generated is based on the location where the customers based or the services were provided:


	For the Years Ended December 31,
Geographic region	2021	2022	2023
Mainland China	275,824	18,267	115,526
United States of America	48,461	93,921	28,101
Kazakhstan	110,272	57,546	24,571
Malaysia	—	119,337	15,326
Thailand	44,787	2,774	3,701
Indonesia	—	215,198	300
Canada	62,371	18,271	259
Australia	56,001	60,379	9
Cyprus	98,142	36,230	7
Other countries or regions	76,904	29,603	23,677
Total	772,762	651,526	211,477

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes

Schedule of income (loss) before income taxes

Income (loss) before income tax expense consisted of:


	For the Years Ended December 31,
	2021	2022	2023
Mainland China	290,666	126,902	(251,871)
United States of America	(951)	(15,858)	(79,753)
Cayman	30,544	2,024	(69,376)
Singapore	1,013	(16,644)	(8,970)
Others	(4,421)	(8,090)	(55,523)
Total	316,851	88,334	(465,493)

Schedule of Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate

A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows:


	For the Years Ended December 31,
	2021		2022		2023
PRC statutory income tax rates	25.0	%	25.0	%	(25.0)	%
Permanent book-tax difference	1.4	%	(2.4)	%	(1.9)	%
Share-based compensation	3.4	%	5.5	%	1.0	%
Super deduction of R&D expense	(2.6)	%	(14.0)	%	(2.9)	%
Others	0.6	%	6.1	%	0.0	%
Different tax rates in other jurisdictions	(2.2)	%	2.0	%	7.8	%
Effect of tax holiday	(7.8)	%	(16.9)	%	4.7	%
Change in valuation allowance	(14.0)	%	12.6	%	3.4	%
Total	2.4	%	20.3	%	(11.0)	%
Effects of tax holidays entitled by the PRC subsidiaries	24,832		15,354		21,998
Effects of tax holidays entitled by the PRC subsidiaries on basic income (loss) per Class A and Class B ordinary share (US$ cent per share)	0.98		0.60		0.85

Schedule of Composition of Income Tax Expense

The current and deferred portions of income tax expense included in the consolidated statements of comprehensive income (loss) are as follows:


	For the Years Ended December 31,
	2021	2022	2023
Current income tax expense (benefits)	23,113	26,241	(5,654)
Deferred income tax benefits	(15,348)	(7,791)	(45,686)
Income tax expense (benefits)	7,765	18,450	(51,340)

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to the deferred tax asset balances as of December 31, 2022 and 2023 are as follows:


	As of December 31,
	2022	2023
Deferred tax assets
Tax losses carried forward	10,290	57,519
Write-down of inventories	15,540	26,608
Property, equipment and software	5,012	6,597
Share-based compensation	4,427	5,646
Warranty reserve	139	281
Operating lease right-of-use assets	—	260
Allowance for doubtful accounts	203	200
Total gross deferred tax assets	35,611	97,111
Less: Valuation allowance	(13,871)	(30,042)
Deferred tax assets, net of valuation allowance	21,740	67,069
Deferred tax liabilities
Operating lease liabilities	—	(260)
Total gross deferred tax liabilities	—	(260)
Net deferred tax assets	21,740	66,809

Schedule of Movement of Valuation Allowance

Movement of valuation allowance is as follows:


	For the Years Ended December 31,
	2021	2022	2023
Beginning balance	46,712	2,821	13,871
Additions (decreases) during the year	(43,891)	11,050	16,171
Ending balance	2,821	13,871	30,042

Property, equipment and software, net - Schedule of Property, Equipment and Software (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property, Equipment and Software
Total cost	$ 115,567	$ 120,338
Less: Accumulated depreciation and amortization	(86,101)	(34,988)
Property, equipment and software, net	29,466	85,350
Mining Equipment
Property, Equipment and Software
Total cost	95,215	102,964
Computers and Electronic Equipment
Property, Equipment and Software
Total cost	10,940	10,008
Leasehold Improvements
Property, Equipment and Software
Total cost	5,772	4,805
Mechanical Equipment
Property, Equipment and Software
Total cost	114	123
Software
Property, Equipment and Software
Total cost	3,283	2,360
Motor Vehicles
Property, Equipment and Software
Total cost	$ 243	$ 78

Inventories

12 Months Ended

Dec. 31, 2023

Inventories

Inventories

4.	Inventories

Inventories consist of the following:


	As of December 31,
	2022	2023
Raw materials	113,306	95,065
Work in process	37,538	15,898
Finished goods	60,796	31,324
Total	211,640	142,287

During the years ended December 31, 2021, 2022 and 2023, the Company recognized inventories write-down of US$7,859, US$69,524 and US$174,838 in cost of revenues, respectively.

Share-Based Compensation

12 Months Ended

Dec. 31, 2023

Share-Based Compensation

Share-Based Compensation

14.	Share-based compensation

In April 2021, the Board of Directors of the Company amended the 2018 Plan. Under the Amended 2018 Plan, in April 2021 and on every January 1 thereafter during which the 2018 Plan remains in effect, the maximum aggregate number of Class A ordinary shares which may be subject to awards under the 2018 Plan will be automatically increased by 15.0% of the total number of Class A ordinary shares issued and outstanding on December 31 of the preceding calendar year, if and whenever the unallocated Class A ordinary shares which may be issuable under the 2018 Plan account for less than 3% of the then total issued and outstanding Class A ordinary shares. In May and September 2021, the Company issued 94,927,065 Class A ordinary shares and 63,774,885 Class A ordinary shares, which were then reserved under the Amended 2018 Plan.

(a)

Restricted share units

The following table summarizes the RSUs activity for the years ended December 31, 2021, 2022 and 2023:


	Number of	Weighted average
	shares	grant date fair value
		US$
Outstanding as of December 31, 2020	9,040,000	0.23
Granted	236,768,940	0.58
Forfeited	(6,991,000)	0.48
Vested	(101,574,270)	0.33
Outstanding as of December 31, 2021	137,243,670	0.74
Granted	62,410,200	0.25
Forfeited	(22,844,235)	0.32
Vested	(53,018,580)	0.68
Outstanding as of December 31, 2022	123,791,055	0.60
Granted	102,323,925	0.15
Forfeited	(28,129,155)	0.29
Vested	(51,031,395)	0.60
Outstanding as of December 31, 2023	146,954,430	0.35

In 2023, the Company granted 102,323,925 RSUs to the Company’s employees under the Amended 2018 Plan. The Company used closing price of ordinary share to determine the fair value of the RSUs. Compensation expense related to RSUs with service conditions is recognized over the requisite service period, which is generally the vesting term of up to five years.

As of December 31, 2023, there was USD32,933 unrecognized compensation expense related to RSUs, which is expected to be recognized over a weighted-average period of 36.45 months.

(b)

Share options

The following table summarizes the share options for the years ended December 31, 2021, 2022 and 2023:


		Weighted-Average	Weighted
		per Share	Average
	Number of	Exercise	Remaining	Aggregate
	shares	Price	Contractual Term	Intrinsic Value
		US$	Years	US$
Outstanding as of December 31, 2020	—	—	—	—
Granted	114,000,000	0.76	—	—
Outstanding as of December 31, 2021	114,000,000	0.76	9.10	—
Outstanding as of December 31, 2022	114,000,000	0.76	8.12	—
Granted	30,000,000	0.40	—	—
Outstanding as of December 31, 2023	144,000,000	0.69	7.53	—
Expected to vest as of December 31, 2023	144,000,000	0.69	7.53	—
Exercisable as of December 31, 2023	84,000,000	0.69	7.53	—

The aggregate intrinsic value as of December 31, 2023 in the table above represents the difference between the fair value of the Company’s ordinary share on December 31, 2023 and the exercise price.

The fair values of the share options granted by the Company to employees for the year ended December 31, 2023 are as follows:


		For the Year Ended December 31,
		2023
Weighted average grant date fair value of option per share		0.53
Aggregate grant date fair value of options		75,638

As of December 31, 2023, there was USD22,955 unrecognized compensation expense related to share options, which is expected to be recognized over a weighted-average period of 20.21 months.

The assumptions used to estimate the fair values of the share options granted were as follows:


	For the Year Ended December 31,		For the Year Ended December 31,
	2021		2023
Risk-free rate of return ⁽¹⁾	1.25% to 1.85	%	3.85% to 3.92	%
Dividend yield ⁽²⁾	0	%	0	%
Expected volatility ⁽³⁾	136.91% to 142.01	%	124.86	%
Expected term ⁽⁴⁾	10 years		10 years
Exercise multiple ⁽⁵⁾	2.80		2.80
Fair value of ordinary share	US$3.78 per ADS to US$17.51 per ADS		US$1.79 per ADS

The risk-free rate of return was estimated based on the yield of US Strip Bond with a maturity life equal to the remaining maturity life of the Company’s options as of the valuation date.

Dividend yield is zero as the Company has never declared or paid any cash dividends on its shares, and the Company does not anticipate any dividend payments in the foreseeable future.

The expected volatility was estimated based on the historical volatility of comparable peer public companies and the Company with a time horizon close to the contract life of the Company’s options.

Expected term is the contract life of the option.

The expected exercise multiple was estimated as the average ratio of the stock price to the exercise price of when employees would decide to voluntarily exercise their vested options. As the Company did not have sufficient information of past employee exercise history, it has considered the statistics by making reference to a widely-accepted academic research publication.

Cryptocurrency

12 Months Ended

Dec. 31, 2023

Cryptocurrency.

Cryptocurrency

6.	Cryptocurrency


	As of December 31
	2022	2023
Gross carrying amount	15,076	32,603
Less: Impairment of cryptocurrency	(2,545)	(4,261)
Net	12,531	28,342

Additional information about cryptocurrency consists of the following:


	For the years ended December 31,
	2022	2023
Beginning balance	3,186	12,531
Revenue recognized on acceptance of cryptocurrency	35,500	58,959
Receipt of cryptocurrency as customer deposits	—	4,922
Cost of revenues recognized on payment of cryptocurrency	(8,463)	(8,854)
Proceeds from disposal of cryptocurrency	(9,642)	(40,645)
Realized (gain)loss on disposal of cryptocurrency	(170)	6,135
Impairment of cryptocurrency	(7,880)	(4,706)
Ending balance	12,531	28,342

Income Taxes - Schedule of income (loss) before income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Taxes [Line Items]
Income (loss) before income taxes	$ (465,493)	$ 88,334	$ 316,851
Mainland China
Income Taxes [Line Items]
Income (loss) before income taxes	(251,871)	126,902	290,666
United States of America
Income Taxes [Line Items]
Income (loss) before income taxes	(79,753)	(15,858)	(951)
Cayman
Income Taxes [Line Items]
Income (loss) before income taxes	(69,376)	2,024	30,544
Singapore
Income Taxes [Line Items]
Income (loss) before income taxes	(8,970)	(16,644)	1,013
Others
Income Taxes [Line Items]
Income (loss) before income taxes	$ (55,523)	$ (8,090)	$ (4,421)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(11))
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-URI https://asc.fasb.org//1943274/2147483586/944-220-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 30
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

Share-based compensation - Summary of Assumptions Used to determine the Fair Value of Stock Options (Details) - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2021
Share-based compensation
Dividend yield	0.00%	0.00%
Expected volatility	124.86%
Expected term	10 years	10 years
Exercise multiple	2.80	2.80
Fair value of ordinary share	$ 1.79
Maximum
Share-based compensation
Risk-free rate of return	3.92%	1.85%
Expected volatility		142.01%
Fair value of ordinary share		$ 17.51
Minimum
Share-based compensation
Risk-free rate of return	3.85%	1.25%
Expected volatility		136.91%
Fair value of ordinary share		$ 3.78

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Property, equipment and software, net - Schedule of Depreciation and Amortization Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Equipment and Software
Depreciation and amortization of property, equipment and software	$ 59,641	$ 33,689	$ 1,706
Impairment loss	21,126	0	0
Mining Equipment
Property, Equipment and Software
Impairment loss	21,126
Cost of Revenues
Property, Equipment and Software
Depreciation and amortization of property, equipment and software	54,478	31,002	266
Research and development expenses
Property, Equipment and Software
Depreciation and amortization of property, equipment and software	400	900	438
Sales and marketing expenses
Property, Equipment and Software
Depreciation and amortization of property, equipment and software	36	8	4
General and administrative expenses
Property, Equipment and Software
Depreciation and amortization of property, equipment and software	$ 4,727	$ 1,779	$ 998

Accrued Liabilities and Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2023

Accrued Liabilities and Other Liabilities

Schedule of accrued liabilities and other liabilities


	As of December 31,
	2022	2023
Accrued liabilities and other current liabilities
Provision for reserve for inventory purchase commitments (Note a)	10,890	20,706
Salary and welfare payable	20,744	19,623
Customer deposits	—	7,185
Other tax payables	8,057	7,019
Customer refund	4,226	3,812
VAT received from customers related to contract liabilities	19	1,429
Warranty reserve (Note b)	1,716	878
Others	2,697	3,588
Total	48,349	64,240
Other non-current liabilities
Deferred government grant	—	9,191
Refund from depository bank – non-current	598	516
Total	598	9,707

Schedule of product warranty liability

Movement of provision for warranty is as follows:


	For the year ended December 31,
	2022	2023
Accrued warranty—beginning of year	2,827	1,716
Accrual for warranties issued during the year	1,896	1,902
Warranty claims paid	(1,167)	(1,532)
Warranty expired	(1,632)	(980)
Foreign currency translation adjustment	(208)	(228)
Accrued warranty—end of year	1,716	878

Summary of significant accounting policies

12 Months Ended

Dec. 31, 2023

Summary of significant accounting policies

Summary of significant accounting policies

2.	Summary of significant accounting policies

(a)

Basis of preparation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).

Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below.

(b)

Use of estimates

(c)

Consolidation

(d)

Foreign currency

(e)

Warrant Liability

(f)

Fair value measurements

The three levels of inputs that may be used to measure fair value include:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Observable, market-based inputs, other than quoted prices, for the assets or liabilities either directly or indirectly.

Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy:


				Fair value at
				December
As of December 31, 2023	Level 1	Level 2	Level 3	31, 2023
Liabilities
Preferred shares forward contract liability	—	—	40,344	40,344

(g)

Cash

Cash represents bank deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal or use.


	As of December 31,
	2022	2023
RMB denominated bank deposits with financial institutions in the PRC	11,109	10,098
US dollar denominated bank deposits with financial institutions in the PRC	61,742	37,170
Others denominated bank deposits with financial institutions in the PRC	2	32
Subtotal	72,853	47,300
US dollar denominated bank deposits with overseas financial institutions	26,334	46,522
RMB denominated bank deposits with overseas financial institutions	8	7
Others denominated bank deposits with overseas financial institutions	2,356	2,325
Total	101,551	96,154

(h)

Accounts receivable

(i)

Inventories

(j)

Cryptocurrency

(k)

Property, equipment and software


Leasehold improvements		the shorter of their useful lives and the lease terms
Computers and electronic equipment		3 to 5 years
Mechanical equipment		5 years
Mining equipment		1.5 years
Motor vehicles		5 years
Software		3 years

(l)

Non-current financial investment

(m)

Impairment of long-lived assets

During the year ended December 31, 2021, 2022 and 2023, the Company recognized impairment charge of nil, nil and US$21,126, respectively.

(n)

Contract liabilities

Cash proceeds received from customers before product delivery is recognized as contract liabilities and is recognized as revenues when revenue recognition criteria are met.

(o)

Revenue from contracts with customers (ASC 606)

Products revenue

Mining revenue

Other revenues

(p)

Revenue from lease arrangements as lessor (ASC 842, Lease)

(q)

Value-added-tax (“VAT”) recoverable and surcharges

(r)

Cost of revenues

(s)

Research and development expenses

(t)

Sales and marketing expenses

(u)

General and administrative expenses

(v)

Government grants

(w)

Lease arrangement as lessee

(x)

Employee social security and welfare benefits

(y)

Income taxes

(z)

Share-based compensation

The Company grants restricted shares and share options to eligible employees and accounts for share-based compensation in accordance with ASC 718, Compensation—Stock Compensation.

(aa)

Statutory reserves

There are no legal requirements in the PRC to fund these reserves by transfer of cash to restricted accounts, and the Company has not done so.

The Company has made US$17, US$769 and nil appropriations to statutory reserve for the years ended December 31, 2021, 2022 and 2023, respectively.

(ab)

Repurchase of share

(ac)

Earnings (loss) per share

Basic earnings (loss) per share is computed by dividing net income (loss) attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period.

(ad)

Comprehensive income (loss)

(ae)

Segment reporting

The geographical region of revenue generated is based on the location where the customers based or the services were provided:


	For the Years Ended December 31,
Geographic region	2021	2022	2023
Mainland China	275,824	18,267	115,526
United States of America	48,461	93,921	28,101
Kazakhstan	110,272	57,546	24,571
Malaysia	—	119,337	15,326
Thailand	44,787	2,774	3,701
Indonesia	—	215,198	300
Canada	62,371	18,271	259
Australia	56,001	60,379	9
Cyprus	98,142	36,230	7
Other countries or regions	76,904	29,603	23,677
Total	772,762	651,526	211,477

(af)

Recently issued accounting pronouncements

New and amended standards adopted by the Company:

ii.

New and amended standards not yet adopted by the Company:

Warrants (Tables)

12 Months Ended

Dec. 31, 2023

Warrants

Summary of Significant Unobservable Inputs Used In Calculation Of Warrant Liability


			Fair Value at
	Fair Value at		June 23, 2022
	December 31, 2021		(remeasurement date)
Risk Free Rate	0.37%-0.81	%	2.32%-2.63	%
Volatility	131.47%-127.93	%	126.66%-140.39	%
Expected dividend yield	0	%	0	%
Expected term	2.3 years-3 years		1.9 years-2.1 years

Schedule of movement of warrant liability


		For the years ended December 31,
		2022
Beginning balance		10,406
Issuance of warrant		—
Change in fair value of financial instruments		(3,795)
Repurchase of warrant liability		(6,611)
Ending balance		—

Basic and Diluted Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Numerator :
Net income (loss)	$ (414,153)	$ 69,884	$ 309,086
Denominator:
Weighted-average ordinary shares outstanding	2,579,202,596	2,560,106,403	2,521,667,815
Basic earnings (loss) per Class A and Class B ordinary share (RMB cent per share)	$ (16.06)	$ 2.73	$ 12.26
Diluted earnings (loss) per share calculation Numerator :
Net income (loss)	$ (414,153)	$ 69,884	$ 309,086
Diluted net earnings/(loss) per share calculation: Denominator
Weighted-average ordinary shares outstanding	2,579,202,596	2,560,106,403	2,521,667,815
Add: weighted-average RSUs		17,785,666	54,489,432
Weighted-average number of shares used in calculating diluted earnings (loss) per Class A and Class B ordinary share	2,579,202,596	2,577,892,069	2,576,157,247
Diluted earnings (loss) per Class A and Class B ordinary share (US$ cent per share)	$ (16.06)	$ 2.71	$ 12.00
Class A and Class B ordinary share
Denominator:
Basic earnings (loss) per Class A and Class B ordinary share (RMB cent per share)	$ (16.06)	$ 2.73	$ 12.26
Diluted net earnings/(loss) per share calculation: Denominator
Weighted-average number of shares used in calculating diluted earnings (loss) per Class A and Class B ordinary share	2,579,202,596	2,577,892,069	2,576,157,247
Diluted earnings (loss) per Class A and Class B ordinary share (US$ cent per share)	$ (16.06)	$ 2.71	$ 12.00

Summary of significant accounting policies - Fair value of financial instruments (Details) - Series A Convertible Preferred Shares Forward Purchase Liabilities - Fair Value, Recurring $ in Thousands	Dec. 31, 2023 USD ($)
Fair value of financial instruments
Balance at fair value	$ 40,344
Level 3
Fair value of financial instruments
Balance at fair value	$ 40,344

Series A Convertible Preferred Shares (Tables)

12 Months Ended

Dec. 31, 2023

Series A Convertible Preferred Shares

Schedule of changes in the value


		Forward Contract
	First Tranche	Liabilities
Beginning balance	—	—
Fair value upon issuance	44,421	38,842
Change in fair value	9,416	1,502
Conversion to outstanding ADSs	(53,837)	—
Ending balance	—	40,344

First Tranche Preferred Shares Financing

Series A Convertible Preferred Shares

Schedule of significant assumptions


	Fair Value of First Tranche
			December 14, 2023 to
	December 11, 2023		December 21, 2023
	(issuance date)		(remeasurement dates)
Risk Free Rate	4.98	%	4.69%-4.81	%
Volatility	100.55	%	96.00%-103.81	%
Expected bond yield	7.83	%	7.37%-7.48	%

Series A Convertible Preferred Shares Forward Purchase Liabilities

Series A Convertible Preferred Shares

Schedule of significant assumptions


	Fair Value of Forward Contract Liability
	December 11, 2023
	(issuance date)		December 31, 2023
Discount Rate	4.98	%	5.14	%

Organization and principal activities

12 Months Ended

Dec. 31, 2023

Organization and principal activities

Organization and principal activities

1.	Organization and principal activities

Canaan Inc., an exempted company with limited liability incorporated in the Cayman Islands, through wholly-owned subsidiaries (collectively referred to as the “Company”), is principally engaged in integrated circuit (the “IC”) design and sale and lease of final mining equipment by integrating its IC products for Bitcoin mining and related components in the People’s Republic of China (the “PRC”), Singapore and other countries and regions.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenues
Other revenues	$ 622	$ 106	$ 1,259
Total revenues	211,477	651,526	772,762
Cost of revenues
Other cost	(2,308)	(223)	(639)
Total cost of revenues	(452,257)	(421,239)	(331,005)
Gross profit (loss)	(240,780)	230,287	441,757
Operating expenses:
Research and development expenses	(64,845)	(81,755)	(52,172)
Sales and marketing expenses	(8,175)	(9,413)	(15,553)
General and administrative expenses	(71,249)	(88,302)	(91,058)
Impairment on property, equipment and software	(21,126)	0	0
Impairment on cryptocurrency	(4,706)	(7,880)	0
Total operating expenses	(170,101)	(187,350)	(158,783)
Income (loss) from operations	(410,881)	42,937	282,974
Interest income	956	2,372	1,133
Change in fair value of financial instruments	(10,918)	3,795	29,471
Excess of fair value of Series A Convertible Preferred Shares	(59,199)
Investment income			44
Foreign exchange gains, net	12,309	35,935	2,236
Other income, net	2,240	3,295	993
Income (loss) before income tax expense	(465,493)	88,334	316,851
Income tax (expense) benefit	51,340	(18,450)	(7,765)
Net income (loss)	(414,153)	69,884	309,086
Foreign currency translation adjustment, net of nil tax	(6,966)	(36,267)	5,276
Total comprehensive income (loss)	$ (421,119)	$ 33,617	$ 314,362
Weighted average number of shares used in per Class A and Class B ordinary share calculation:
- Basic	2,579,202,596	2,560,106,403	2,521,667,815
- Diluted	2,579,202,596	2,577,892,069	2,576,157,247
Net earnings (loss) per Class A and Class B ordinary share (cent per share)
- Basic	$ (16.06)	$ 2.73	$ 12.26
- Diluted	$ (16.06)	$ 2.71	$ 12.00
Cost of revenues
Share-based compensation expenses were included in:
Share-based compensation expense	$ 207	$ 154	$ 42
Research and development expenses
Share-based compensation expenses were included in:
Share-based compensation expense	9,098	10,251	15,961
Sales and marketing expenses
Share-based compensation expenses were included in:
Share-based compensation expense	234	2,464	1,261
General and administrative expenses
Share-based compensation expenses were included in:
Share-based compensation expense	32,535	50,146	59,233
Products
Revenues
Revenues	176,898	618,890	768,142
Cost of revenues
Cost of revenues	(368,116)	(366,474)	(329,238)
Mining
Revenues
Revenues	33,957	32,530	3,361
Cost of revenues
Cost of revenues	$ (81,833)	$ (54,542)	$ (1,128)

Prepayments and other assets (Tables)

12 Months Ended

Dec. 31, 2023

Prepayments and other assets

Schedule of prepayments and other assets


	As of December 31,
	2022	2023
Prepayments and other current assets
Prepayments to vendors (Note a)	158,687	46,277
VAT recoverable and refund	72,402	55,403
Deferred charges	6,166	7,546
Deposits	3,329	3,746
Prepayment for repurchase of ordinary shares	3	—
Others (Note b)	1,936	9,270
Total	242,523	122,242
Other non-current assets
Long-term rental and other deposits	2,448	486
Prepayments for purchase of software	56	—
Total	2,504	486

Contingencies

12 Months Ended

Dec. 31, 2023

Contingencies

Contingencies

17.	Contingencies

On April 15, 2021, a new putative class action was filed in the United States District Court for the Southern District of New York against the Company and certain officers of the Company. The complaint alleges that the Company’s press release issued in February 2021 about increased visibility into revenue and the size and quality of orders the Company was receiving were materially false and misleading. Plaintiff claims that the truth about the Company’s revenue was revealed in April 2021, when the Company announced its latest financial results. On December 14, 2021, the Court so-ordered this stipulation. On February 7, 2022, lead plaintiffs filed an amended complaint asserting the same claims under Sections 10(b) and 20(a) of the Exchange Act against the same set of defendants. The amended complaint alleges the Company’s November 30, 2020 and February 10, 2021 press releases and the April 9, 2021 interview of the Company’s chief executive officer in an article published by Decrypt contained false and misleading statements regarding the pre-sale orders the Company had received and the Company’s ability to secure sufficient chip supply to meet the increasing demand for mining machines. On April 8, 2022, Canaan filed a motion to dismiss the amended complaint, which has been fully briefed as of July 7, 2022. On March 27, 2023, the Court granted the Company’s motion to dismiss in full. The Court also granted lead plaintiffs leave to amend their amended complaint within 30 days of the Court’s order. On May 10, 2023, lead plaintiffs informed the Court that they decided not to file a second amended complaint. On May 12, 2023, the Court entered the judgment dismissing this action with prejudice. Plaintiffs did not appeal.

Also, the Company is and, from time to time, may in the future become, involved in other legal proceedings in the ordinary course of business. The Company currently believes that the outcome of any of these existing legal proceedings, either individually or in the aggregate, will not have a material impact on the operating results, financial condition or cash flows of the Company. With respect to existing legal proceedings, the Company has either determined that the existence of a material loss is not reasonably possible or that it is unable to estimate a reasonably possible loss or range of loss. The Company may incur substantial legal fees, which are expensed as incurred, in defending against these legal proceedings.

Income Taxes - Schedule of Movement of Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Taxes
Beginning balance	$ 13,871	$ 2,821	$ 46,712
Additions (decreases) during the year	16,171	11,050	(43,891)
Ending balance	$ 30,042	$ 13,871	$ 2,821

Basic and Diluted Earnings (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2023

Basic and Diluted Earnings (Loss) Per Share

Schedule of Earnings Per Share, Basic and Diluted


	For the Years Ended December 31,
	2021	2022	2023
Basic earnings (loss) per share calculation
Numerator:
Net income (loss)	309,086	69,884	(414,153)
Denominator:
Weighted-average ordinary shares outstanding	2,521,667,815	2,560,106,403	2,579,202,596
Basic earnings (loss) per Class A and Class B ordinary share (US$ cent per share)	12.26	2.73	(16.06)


	For the Years Ended December 31,
	2021	2022	2023
Diluted earnings (loss) per share calculation
Numerator:
Net income (loss)	309,086	69,884	(414,153)
Denominator:
Weighted-average ordinary shares outstanding	2,521,667,815	2,560,106,403	2,579,202,596
Add: weighted-average RSUs	54,489,432	17,785,666	—
Weighted-average number of shares used in calculating diluted earnings (loss) per Class A and Class B ordinary share	2,576,157,247	2,577,892,069	2,579,202,596
Diluted earnings (loss) per Class A and Class B ordinary share (US$ cent per share)	12.00	2.71	(16.06)

Effects of Outstanding RSUs Excluded From Computation of Diluted Loss Per Share Due to Anti-Dilutive Effect

The potentially dilutive securities that have not been included in the calculation of diluted net loss per share as their inclusion would be anti- dilutive are as follows:


	For the Year
	Ended December 31,
	2021	2022	2023
Weighted-average RSUs	—	—	30,741,795
Share options	114,000,000	114,000,000	144,000,000
Warrants	70,833,345	—	—

Prepayments and other assets

12 Months Ended

Dec. 31, 2023

Prepayments and other assets

Prepayments and other assets

5.	Prepayments and other assets

The current and non-current portions of prepayments and other assets consist of the following:


	As of December 31,
	2022	2023
Prepayments and other current assets
Prepayments to vendors (Note a)	158,687	46,277
VAT recoverable and refund	72,402	55,403
Deferred charges	6,166	7,546
Deposits	3,329	3,746
Prepayment for repurchase of ordinary shares	3	—
Others (Note b)	1,936	9,270
Total	242,523	122,242
Other non-current assets
Long-term rental and other deposits	2,448	486
Prepayments for purchase of software	56	—
Total	2,504	486

Note a: Prepayments to vendors mainly represent prepayments made to third-party suppliers for foundry services. The Company also records a write-down for the prepayment to third-party suppliers when the Company believes that the net realizable value (being the estimated selling price of final products, less the costs of completion and selling expenses) is less than carrying amount. For the years ended December 31, 2021, 2022 and 2023, the Company recorded write-downs of nil, US$12,828 and US$5,627 for the prepayment to third-party suppliers in cost of revenues.

Note b: During the years ended December 31, 2021, 2022 and 2023, the Company recorded provision of allowance for other receivables of US$143, US$13 and US$0.3, respectively.

Accrued liabilities and other liabilities - Schedule of Product Warranty Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Accrued Liabilities and Other Liabilities
Accrued warranty-beginning of year	$ 1,716	$ 2,827
Accrual for warranties issued during the year	1,902	1,896
Warranty claims paid	(1,532)	(1,167)
Warranty expired	(980)	(1,632)
Foreign currency translation adjustment	(228)	(208)
Accrued warranty-end of year	$ 878	$ 1,716

Cryptocurrency - Additional information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cryptocurrency
Beginning balance	$ 12,531
Revenue recognized on acceptance of cryptocurrency	58,959	$ 35,500	$ 3,361
Cost of revenues recognized on payment of cryptocurrency	(8,854)	(8,463)
Proceeds from disposal of cryptocurrency	(40,645)	(9,642)
Realised gain (loss) on sale of cryptocurrency	(6,135)	170
Impairment on cryptocurrency	(4,706)	(7,880)	0
Ending balance	28,342	12,531
Cryptocurrency
Cryptocurrency
Beginning balance	12,531	3,186
Revenue recognized on acceptance of cryptocurrency	58,959	35,500
Receipt of cryptocurrency as customer deposits	4,922
Cost of revenues recognized on payment of cryptocurrency	(8,854)	(8,463)
Proceeds from disposal of cryptocurrency	(40,645)	(9,642)
Realised gain (loss) on sale of cryptocurrency	6,135	(170)
Impairment on cryptocurrency	(4,706)	(7,880)
Ending balance	$ 28,342	$ 12,531	$ 3,186

Property, equipment and software, net

12 Months Ended

Dec. 31, 2023

Property, equipment and software, net

Property, equipment and software, net

7.	Property, equipment and software, net

Property, equipment and software consist of the following:


	As of December 31,
	2022	2023
Cost:
Mining equipment	102,964	95,215
Computers and electronic equipment	10,008	10,940
Leasehold improvements	4,805	5,772
Mechanical equipment	123	114
Software	2,360	3,283
Motor vehicles	78	243
Total cost	120,338	115,567
Less: Accumulated depreciation and amortization	(34,988)	(86,101)
Property, equipment and software, net	85,350	29,466

Depreciation and amortization expenses recognized for the years ended December 31, 2021, 2022 and 2023 are summarized as follows:


	For the Years Ended December 31,
	2021	2022	2023
Cost of revenues	266	31,002	54,478
Research and development expenses	438	900	400
Sales and marketing expenses	4	8	36
General and administrative expenses	998	1,779	4,727
Total	1,706	33,689	59,641

The Company determined that the carrying value of its mining equipment was not recoverable. The Company’s mining equipment is measured at fair value based on a non-recurring basis, if determined to be impaired. As of each relevant measurement date, the fair value of mining equipment, if determined to be impaired, are primarily represented by the price market participant would pay to acquire the mining equipment, which reflects the highest and best use of mining equipment. Fair value of the mining equipment was estimated using discounted cash flows under the income approach classified in Level 3 of the fair value hierarchy. Significant unobservable input used in the fair value measurement include Bitcoin prices. An impairment loss of US$21,126 was recognized for the year ended December 31, 2023, which is calculated as the amount by which the carrying value of the relevant mining equipment exceeded its estimated fair value.

Prepayments and other assets - Summary of Prepayments and other assets (Parenthetical) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Prepayments and other assets
Write-downs of prepayments	$ 5,627,000	$ 12,828,000	$ 0
Allowance for credit loss, other receivables	$ 300	$ 13,000	$ 143,000

Share-based compensation - Schedule of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share Options
Number of shares , Beginning Balance	114,000,000	114,000,000	0
Number of options granted	30,000,000		114,000,000
Number of shares , Ending Balance	144,000,000	114,000,000	114,000,000
Number of shares , Expected to vest	144,000,000
Number of shares , Exercisable	84,000,000
Share Based Compensation Arrangement By Share Based Payment Award Options Weighted Average Exercise Price [Abstract]
Weighted-Average per Share Exercise Price , Beginning Balance	$ 0.76	$ 0.76	$ 0
Weighted-Average per Share Exercise Price , Granted	0.40		0.76
Weighted-Average per Share Exercise Price , Ending Balance	0.69	$ 0.76	$ 0.76
Weighted-Average per Share Exercise Price, Expected to vest	0.69
Weighted-Average per Share Exercise Price , Exercisable	$ 0.69
Share-Based Compensation Arrangement by Share-Based Payment Award Options Weighted Average Remaining Contractual Terms [Abstract]
Weighted Average Remaining Contractual Term, Expected to vest	7 years 6 months 10 days	9 years 1 month 6 days	9 years 1 month 6 days
Share-Based Compensation Arrangements By Share-Based Payment Award Options Aggregate Intrinsic Value [Abstract]
Aggregate Intrinsic Value, Beginning balance	$ 0	$ 0
Aggregate Intrinsic Value, Granted	0		$ 0
Aggregate Intrinsic Value, Ending balance	0	$ 0	$ 0
Aggregate Intrinsic Value, Expected to vest	0
Aggregate Intrinsic Value, Exercisable	$ 0

Leases - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Leases
2024	$ 1,244
2025	212
Total undiscounted lease payments	1,456
Less: imputed interest	(30)
Total operating lease liabilities	1,426
Amounts due within 12 months	1,216	$ 2,314
Non-current operating lease liability	$ 210	$ 1,441

Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2023 shares
Document Information [Line Items]
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	001-39127
Entity Registrant Name	Canaan Inc.
Entity Incorporation, State or Country Code	E9
Entity Address, Address Line One	28 Ayer Rajah Crescent #06-08
Entity Address, Country	SG
Entity Address, Postal Zip Code	S139959
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Entity Central Index Key	0001780652
Amendment Flag	false
Auditor Name	KPMG Huazhen LLP
Auditor Firm ID	1186
Auditor Location	Beijing, China
Class A ordinary shares
Document Information [Line Items]
Title of each class	Class A ordinary shares, par value US$0.00000005 per share*
Name of each exchange on which registered	NASDAQ
Entity Common Stock, Shares Outstanding	3,460,454,223
No Trading Symbol Flag	true
Class B Ordinary Shares
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	311,624,444
ADS
Document Information [Line Items]
Title of each class	American Depositary Shares, each representing 15Class A ordinary share
Trading Symbol	CAN
Name of each exchange on which registered	NASDAQ
Business Contact
Document Information [Line Items]
Entity Address, Address Line One	28 Ayer Rajah Crescent #06-08
Entity Address, Country	SG
Entity Address, Postal Zip Code	S139959
Contact Personnel Name	James Jin Cheng, Chief Financial Officer
City Area Code	+65
Local Phone Number	6305 6618
Contact Personnel Email Address	IR@canaan-creative.com

Risks and concentration (Tables)

12 Months Ended

Dec. 31, 2023

Risks and concentration

Summary of accounts receivable concentration of credit risk and customers contribution of total revenue

Accounts receivable concentration of credit risk is as below:


	As of December 31,
	2022	2023
Customer A	—	97	%

Customers which contributed more than 10% of total revenue are as below:


	For the Years Ended December 31,
	2021		2022		2023
Customer B	*		33	%	*
Customer C	18	%	22	%	*
Customer D	*		16	%	*
Customer E	*		*		14	%

Less than 10%

Leases

12 Months Ended

Dec. 31, 2023

Leases

Leases

The Company leases facilities under non-cancellable operating leases expiring on different dates. The terms of substantially all these leases are three years or less. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. All the Company’s leases qualify as operating leases. Variable lease cost and short-term leases (lease terms less than 12 months) are recognized as incurred.

(a)

The components of lease expenses were as follows:


	For the Years Ended December 31,
	2021	2022	2023
Lease cost:
Reduction in the carrying amount of ROU assets	2,758	2,254	2,481
Interest of operating lease liabilities	253	193	115
Expenses for short-term lease within 12 months	—	216	417
Total lease cost	3,011	2,663	3,013

(b)

Supplemental cash flow information related to leases was as follows:


	For the Years Ended December 31,
	2021	2022	2023
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows from operating leases	3,253	2,944	2,356
Operating lease right-of-use assets obtained in exchange for lease obligations:
Operating leases	5,752	2,398	2,358
Operating lease liability settled through termination of lease:
Operating leases	406	358	2,301

(c)

Supplemental balance sheet information related to leases was as follows:


	As of December 31,
	2021	2022	2023
Weighted-average remaining lease term
Operating leases	2.4 year	1.9 year	1.2 year
Weighted-average discount rate
Operating lease	5.17% per annum	4.58% per annum	4.55% per annum

(d)

Maturities of operating lease liabilities were as follows:


Years Ending December 31,		As of December 31, 2023
2024		1,244
2025		212
Total undiscounted lease payments		1,456
Less: imputed interest		(30)
Total operating lease liabilities		1,426
Amounts due within 12 months		1,216
Non-current operating lease liability		210

Condensed Financial Information of the Parent Company (Tables)

12 Months Ended

Dec. 31, 2023

Condensed financial information of the parent company

Schedule of Condensed Balance Sheets

CONDENSED BALANCE SHEETS


	As of December 31,
	2022	2023
	US$	US$
ASSETS
Current assets:
Cash	5,682	6,902
Prepayments and other current assets	180	644
Total current assets	5,862	7,546
Non-current assets:
Investments in and receivables from subsidiaries	602,798	382,605
Total assets	608,660	390,151
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Preferred shares forward contract liabilities	—	40,344
Refund from depository bank – current	316	580
Other payable	80	524
Non-current liabilities:
Refund from depository bank – non-current	598	516
Total liabilities	994	41,964
Shareholders’ equity:
Ordinary shares	—	—
Subscriptions receivable from shareholders	—	—
Treasury stocks	(57,055)	(57,055)
Additional paid-in capital	492,220	653,860
Statutory reserves	14,892	14,892
Accumulated other comprehensive loss	(36,913)	(43,879)
Retained earnings (accumulated deficit)	194,522	(219,631)
Total shareholders’ equity	607,666	348,187
Total liabilities and shareholders’ equity	608,660	390,149

Schedule of Condensed Statements of Comprehensive Loss

CONDENSED STATEMENTS OF COMPREHENSIVE LOSS


	For the year ended December 31,
	2021	2022	2023
	US$	US$	US$
Operating expenses:
General and administrative expenses	(1,033)	(3,120)	(4,538)
Loss from operations	(1,033)	(3,120)	(4,538)
Interest income	—	1	323
Other income, net	316	316	337
Change in fair value of financial instruments	29,471	3,795	(10,918)
Excess of fair value of Series A Convertible Preferred Shares	—	—	(59,199)
Share of income (losses) from subsidiaries	356,491	58,734	(340,158)
Net income (loss)	385,245	59,726	(414,153)
Foreign currency translation adjustment, net of nil tax	(3,432)	14,444	(6,966)
Total comprehensive income (loss)	381,813	74,170	(421,119)

Schedule of Condensed Statements of Cash Flows

CONDENSED STATEMENTS OF CASH FLOWS


	For the year ended December 31,
	2021	2022	2023
	US$	US$	US$
Cash flows from operating activities
Receipt of refund from depository bank	—	—	520
Other cash used in operating activities	(1,014)	(3,078)	(4,459)
Net cash used in operating activities	(1,014)	(3,078)	(3,939)
Cash flows from investing activities
Decrease (increase) in receivables from subsidiaries	(136,643)	43,869	(84,760)
Net cash provided by (used in) investing activities	(136,643)	43,869	(84,760)
Cash flows from financing activities
Repurchase of warrants	—	(6,358)	—
Payment for repurchase of ordinary shares	(16,240)	(33,643)	—
Prepayment under share repurchase agreement	(90)	—	—
Payment for cost of issuance	(81)	—	—
Proceeds from issuance of ordinary shares and warrants	158,634	—	—
Proceeds from issuance of ordinary shares, net of issuance costs	—	—	65,430
Proceeds from issuance of Series A Convertible Preferred Shares, net of issuance costs	—	—	24,575
Net cash provided by (used in) financing activities	142,223	(40,001)	90,005
Net increase in cash	4,566	790	1,306
Effect of exchange rate changes on cash	251	52	(86)
Cash, beginning of year	23	4,840	5,682
Cash, end of year	4,840	5,682	6,902

Series A Convertible Preferred Shares - Changes in the value (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Warrants
Excess of fair value of Series A Convertible Preferred Shares	$ 59,199
Change in fair value of financial instruments	(10,918)	$ 3,795	$ 29,471
Preferred Shares
Warrants
Excess of fair value of Series A Convertible Preferred Shares	(59,199)
First Tranche Preferred Shares Financing
Warrants
Fair value at issuance	44,421
Change in fair value	$ (9,416)
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Change in fair value of financial instruments
Conversion to outstanding ADSs	$ (53,837)
Change in fair value of financial instruments	9,416
Series A Convertible Preferred Shares Forward Purchase Liabilities
Warrants
Fair value at issuance	38,842
Change in fair value	(1,502)
Ending balance	$ 40,344

Leases - Components of Lease Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Lease cost:
Reduction in the carrying amount of ROU assets	$ 2,481	$ 2,254	$ 2,758
Interest of operating lease liabilities	115	193	253
Expenses for short-term lease within 12 months	417	216
Total lease cost	$ 3,013	$ 2,663	$ 3,011

Risks and concentration

12 Months Ended

Dec. 31, 2023

Risks and concentration

Risks and concentration

3.	Risks and concentration

(a)

Concentration of credit risk

Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company places its cash with financial institutions with high credit ratings and quality.

The Company conducts credit evaluations of customers, and generally does not require collateral or other security from its customers. The Company establishes an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers.

Accounts receivable are unsecured and are derived from revenue earned through customers. The risk with respect to accounts receivable is mitigated by credit evaluations performed on them.

The Company believes it is not exposed to significant credit risk on cash and accounts receivable.

As of December 31, 2022 and 2023, accounts receivable were nil and US$2,997, respectively.

Accounts receivable concentration of credit risk is as below:


	As of December 31,
	2022	2023
Customer A	—	97	%

Customers which contributed more than 10% of total revenue are as below:


	For the Years Ended December 31,
	2021		2022		2023
Customer B	*		33	%	*
Customer C	18	%	22	%	*
Customer D	*		16	%	*
Customer E	*		*		14	%

Less than 10%

(b)

Supplier concentration

For the year ended December 31, 2021, the Company’s purchases of its integrated circuits mainly from one supplier.

For the year ended December 31, 2022, the Company’s purchases substantially all its integrated circuits from three suppliers.

For the year ended December 31, 2023, the Company’s purchases substantially all its integrated circuits from two suppliers.

Although only a limited number of manufacturers for such integrated circuits are available, management believes that they could change their suppliers within these manufacturers which provided integrated circuits on comparable terms. A change in suppliers, however, could cause a delay in manufacturing and a possible loss of sales, which would affect operating results adversely.

Income Taxes - Schedule of Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Taxes
PRC statutory income tax rates	25.00%	25.00%	25.00%
Permanent book - tax difference	1.90%	(2.40%)	1.40%
Share-based compensation	(1.00%)	5.50%	3.40%
Super deduction of R&D expense		(14.00%)	(2.60%)
Super deduction of R&D expense	(2.90%)
Others	0.00%	6.10%	0.60%
Different tax rates in other jurisdictions	(7.80%)	2.00%	(2.20%)
Effect of tax holiday	(4.70%)	(16.90%)	(7.80%)
Change in valuation allowance	(3.40%)	12.60%	(14.00%)
Total	11.00%	20.30%	2.40%
Effects of tax holidays entitled by the PRC subsidiaries	$ 21,998	$ 15,354	$ 24,832
Class A and ClassB
Income Taxes
Effects of tax holidays entitled by the PRC subsidiaries on basic income (loss) per Class A and Class B ordinary share (US$ cent per share)	$ 0.85	$ 0.60	$ 0.98

Share-based compensation - Summary of Fair Values of the Share Options Granted (Details) - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2021
Share-Based Compensation
Number of options granted	30,000,000	114,000,000
Weighted average grant date fair value of option per share	$ 0.53
Aggregate grant date fair value of options	$ 75,638

Series A Convertible Preferred Shares

12 Months Ended

Dec. 31, 2023

Series A Convertible Preferred Shares

Series A Convertible Preferred Shares

12.	Series A Convertible Preferred Shares

On November 27, 2023, the Company entered into a Securities Purchase Agreement with an institutional investor (the “Buyer”), pursuant to which the Company shall issue and sell to the Buyer up to 125,000 Series A Convertible Preferred Shares (the “Preferred Shares”) in three tranches at the price of US$1,000 for each Preferred Share. According to the Securities Purchase Agreement, the Company will issue 25,000 Preferred Shares (“First Tranche”) to the Buyer on the closing date of the First Tranche (“First Closing Date”). Upon the First Closing Date, the Company is obligated to issue a number of Preferred Shares (“Second Tranche”) that is not less than 25,000 and not more than 50,000 (the “Forward Contract Liabilities”). The closing of the third tranche of preferred shares financing (the “Third Tranche”), would be contingent upon mutual agreement between the Company and the Buyer. Neither the Company is obliged to sell nor the Buyer is obliged to purchase for the Third Tranche. In connection with the issuance of the Preferred Shares, the Company also should deliver 8,000,000 ADSs (120,000,000 Class A ordinary shares) collectively as pre-delivery shares (the “Pre-delivery Shares”) to the Buyer. The Pre-delivery Shares shall be returned to the Company when the Buyer does not hold any preferred shares.

The rights, preferences and privileges of the Series A Convertible Preferred Shares are as follows:

Conversion Rights

At any time after the issuance, the holder has the right to convert any portion of the outstanding and the unpaid Conversion Amount (the “Conversion Amount”, equals to US$1,072.80 per preferred share plus any accrued and unpaid dividends, and 15% p.a. late charges if any) into variable number of ADSs by dividing the difference of the conversion price less the issuance fee, where conversion price is the lower of (1) 120% of the Weighted Average Price of the ADSs on the trading day immediately preceding the applicable issuance date of the Series A Preferred Shares (i.e. a fixed monetary amount US$1.81); and (2) 92.5% of the lowest daily average market price over 5 days before conversion, as specified in the Securities Purchase Agreement.

Redemption Rights

The Company shall redeem the Preferred Shares remained outstanding on the Maturity Date in cash in an amount equal to 105% of the Conversion Amount. The Maturity Date is the date that is 12 months immediately following the issuance of the Preferred Shares, which may be extended at the option of the Buyer when certain events occur.

Voting Rights

No voting rights are carried by the Series A Preferred Shares.

Dividend Rights

The Buyer will be entitled to receive dividends in the same manner of Class A Ordinary Shares holders on a as converted basis.

Liquidation Preferences

In the event of any liquidation, dissolution or winding up of the Company, either voluntary or involuntary, the Buyer shall be entitled to receive in cash out of the assets of the Company, whether from capital or from earnings available for distribution to its shareholders, an amount per Series A Preferred Share equal to the greater of (1) Conversion Amount and (2) the amount that would have been received had the Series A Preferred Shares been converted into the Class A ordinary shares issuable upon conversion of the Series A Preferred Shares immediately prior to liquidation event.

On December 11, 2023, the Company closed the First Tranche and issued 25,000 convertible Preferred Shares to the Buyer with total net proceeds of US$24,575. Concurrently, the Company also delivered 8,000,000 ADSs (120,000,000 Class A ordinary shares) collectively as pre-delivery shares (the “Pre-delivery Shares”) to the Buyer. As of December 31, 2023, all the Preferred Shares issued pursuant to the First Tranche were converted to 23,650,082 outstanding ADSs (354,751,230 Class A ordinary shares) at the conversion prices from $1.06 to $1.42, which are the lower of US$1.81 and 92.5% of the lowest daily average market price over 5 days before the conversion.

As the First Tranche of Preferred Shares, Forward Contract, Pre-delivery shares can be separately exercised, i.e. each can continue to exist unchanged when the other is exercised, the Company concluded that they were freestanding.

For the First Tranche, the Company had an unconditional obligation to issue variable number of the Preferred Shares, and the monetary value of the obligation is predominantly based on a fixed amount that is known at the inception. The Company classified the Preferred Shares as a liability, recorded initially at fair value upon issuance date, and remeasured at fair value with changes recognized in earnings.

The Forward Contract Liabilities are exercisable by the Buyer for the Second Tranche, so as to embody an obligation of the Company to repurchase the Company’s equity shares by transferring assets. In accordance with ASC 480, the Forward Contract Liabilities is accounted for as a liability, recorded initially at fair value upon issuance date, and remeasured to fair value at the end of each reporting period with changes recognized in earnings.

The Pre-delivery Shares are considered a form of stock borrowing facility and was accounted for as own-share lending arrangement. The Company did not receive any proceeds or pay any consideration related to the borrowed shares, except that the Company received a one-time nominal fee of US$6.00 upon the issuance of the Pre-delivery Shares and will pay the same amount to the Buyer upon the return of Pre-delivery Shares, respectively. As of December 31, 2023, no Pre-delivery Shares were returned to the Company. The Company accounted for the share lending arrangement as an issuance cost associated with the First Tranche, and recorded at fair value upon issuance date against additional paid-in capital. Although legally issued, the Pre-delivery Shares were not considered outstanding, and therefore excluded from basic and diluted earnings (loss) per share unless default of the share lending arrangement occurs, at which time the Pre-delivery Shares would be included in the basic and diluted earnings (loss) per share calculation.

The fair value of the First Tranche (US$44,421), Forward Contract Liabilities (US$38,842) and Pre-delivery Shares (US$511) upon issuance date in aggregate exceeded the net proceeds from the financing (US$24,575) by US$59,199, which was recognized as the excess of fair value of Series A Convertible Preferred Shares financing for the year ended December 31, 2023.

The fair value of the First Tranche upon the conversion dates was US$53,837, and the change in fair value of the First Tranche was US$9,416 for the year ended December 31, 2023. As of December 31, 2023, the Forward Contract Liabilities was not exercised by the Buyer and the Second Tranche was not closed.

The Company estimate the fair value of First Tranche and the Forward Purchase Liability using the Monte Carlo model, which involves significant assumptions including the risk-free interest rate, the expected volatility and expected bond yield. The Company classifies the valuation techniques that use these inputs as Level 3.


	Fair Value of First Tranche
			December 14, 2023 to
	December 11, 2023		December 21, 2023
	(issuance date)		(remeasurement dates)
Risk Free Rate	4.98	%	4.69%-4.81	%
Volatility	100.55	%	96.00%-103.81	%
Expected bond yield	7.83	%	7.37%-7.48	%


	Fair Value of Forward Contract Liability
	December 11, 2023
	(issuance date)		December 31, 2023
Discount Rate	4.98	%	5.14	%

The assumptions are inherently uncertain and subjective. Changes in any unobservable inputs may have a significant impact on the fair value of First Tranche and Forward Contract Liability.

The movement of Preferred Shares and Forward Contract Liability for the year ended December 31, 2023 consist of the followings:


		Forward Contract
	First Tranche	Liabilities
Beginning balance	—	—
Fair value upon issuance	44,421	38,842
Change in fair value	9,416	1,502
Conversion to outstanding ADSs	(53,837)	—
Ending balance	—	40,344

Condensed Financial Information of the Parent Company - Additional Information (Details)	12 Months Ended
	Dec. 31, 2023
Subsidiaries
Condensed Financial Statements Captions [Line Items]
Restricted net assets as percentage of consolidated and unconsolidated subsidiaries	25.00%

Treasury stocks - Additional Information (Details) - USD ($) $ in Thousands			1 Months Ended			12 Months Ended
	May 03, 2021	Jan. 01, 2021	Sep. 30, 2021	May 31, 2021	Jan. 31, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Mar. 16, 2022	Sep. 19, 2021	Apr. 30, 2018
Treasury stocks
Treasury stock, shares						257,105,340	308,136,735
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation						$ 2,420	$ 4,819	$ 23,353
Issuance of ordinary shares in at-the-market offering, net of offering cost						$ 65,430
Stock repurchase program authorized amount										$ 20,000
Common stock shares outstanding		2,328,326,132				3,514,973,327	2,496,001,757
2018 Equity Incentive Plan
Treasury stocks
Ordinary shares Held in trust											51,624,000
Restricted Share Units
Treasury stocks
Shares transferred from treasury stock to ordinary shares						41,164,350
Restricted Share Units \| 2018 Equity Incentive Plan
Treasury stocks
Shares transferred from treasury stock to ordinary shares								5,757,945
Restricted Share Units \| Amended 2018 Plan
Treasury stocks
Treasury stock, shares						0	9,867,045
Number of shares transferred from treasury stock to ordinary shares upon vesting						9,867,045
Restricted Ordinary Shares \| 2018 Equity Incentive Plan
Treasury stocks
Treasury stock, shares						12,338,955	12,338,955
Restricted Ordinary Shares \| Amended 2018 Plan
Treasury stocks
Treasury stock, shares								95,816,325
Restricted Ordinary Shares \| Initial Public Offering \| 2018 Equity Incentive Plan
Treasury stocks
Restricted share units vested transferred from treasury stocks to ordinary shares		18,096,900
Shares Repurchase
Treasury stocks
Share repurchased					25,799,190		154,614,975	34,683,225
Proceeds from repurchases							$ 37,379	$ 16,106
Stock repurchase program authorized amount									$ 100,000
Shares Repurchase \| Restricted Ordinary Shares
Treasury stocks
Treasury stock, shares						173,933,040
ADS
Treasury stocks
Issuance of ordinary shares in at-the-market offering, net of offering cost (in shares)	4,047,620
ADS \| Share Repurchase Program
Treasury stocks
Share repurchased						0
ADS \| Shares Repurchase
Treasury stocks
Share repurchased					1,719,946			2,312,215
Common stock shares outstanding							10,307,665
Class A ordinary shares
Treasury stocks
Issuance of ordinary shares in at-the-market offering, net of offering cost	$ 158,634
Common stock shares outstanding		2,016,701,688
Class A ordinary shares \| Amended 2018 Plan
Treasury stocks
Shares Issued in Period			94,927,065	94,927,065
Ordinary shares contributed for future share awards			63,774,885	63,774,885
Share-based payment arrangement, shares withheld for tax withholding obligation						13,904,625	17,102,175	33,255,495
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation						$ 2,420	$ 4,819	$ 23,353
Issuance of ordinary shares in at-the-market offering, net of offering cost (in shares)						13,904,625	37,313,775	13,043,895
Issuance of ordinary shares in at-the-market offering, net of offering cost						$ 2,420	$ 20,908	$ 7,264

Condensed Financial Information of the Parent Company - Schedule of Condensed Statements of Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Operating expenses:
General and administrative expenses	$ (71,249)	$ (88,302)	$ (91,058)
Interest income	956	2,372	1,133
Other income, net	2,240	3,295	993
Change in fair value of financial instruments	10,918	(3,795)	(29,471)
Excess of fair value of Series A Convertible Preferred Shares	59,199
Net income (loss)	(414,153)	69,884	309,086
Total comprehensive income (loss)	(421,119)	33,617	314,362
Foreign currency translation adjustment, tax	0	0	0
Parent Company
Operating expenses:
General and administrative expenses	(4,538)	(3,120)	(1,033)
Loss from operations	(4,538)	(3,120)	(1,033)
Interest income	323	1
Other income, net	337	316	316
Change in fair value of financial instruments	(10,918)	3,795	29,471
Excess of fair value of Series A Convertible Preferred Shares	(59,199)
Share of income (losses) from subsidiaries	(340,158)	58,734	356,491
Net income (loss)	(414,153)	59,726	385,245
Foreign currency translation adjustment, net of nil tax	(6,966)	14,444	(3,432)
Total comprehensive income (loss)	$ (421,119)	$ 74,170	$ 381,813

Ordinary shares

12 Months Ended

Dec. 31, 2023

Treasury stocks

Ordinary shares

11.	Ordinary shares

The Company’s authorized share capital is designated into Class A ordinary shares and Class B ordinary shares. Holders of Class A ordinary shares and Class B ordinary shares have the same rights except for voting and conversion rights. Each Class A ordinary share is entitled to one vote and each Class B ordinary share is entitled to fifteen votes. In addition, certain matters including those related to the change of control of the Company require an additional approval by the holders of a majority of Class A ordinary shares voting as a separate class. Each Class B ordinary share is convertible into one Class A ordinary share at any time by the holder thereof. Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. Class B ordinary shares will be automatically converted into the same number of Class A ordinary shares under certain circumstances, including any transfer of Class B ordinary shares by the holder thereof to any person or entity which is not an affiliate of such holder.

As of January 1, 2021, the authorized ordinary shares are 1,000,000,000,000, of which 2,372,222,222 shares were issued and 2,328,326,132 shares were outstanding. These outstanding shares consist of (1) 2,016,701,688 Class A ordinary shares and (2) 311,624,444 Class B ordinary shares, which were held by the Chairman and CEO of the Company.

On May 3, 2021, the Company issued 13,492,065 ADSs (202,380,975 Class A ordinary shares) to certain institutional investors for US$158,634, net of issuance cost. The Company also issued to the investors warrants to purchase up to an aggregate of 4,047,620 ADSs (60,714,300 Class A ordinary shares). Also, the Company issued warrants to two placement agents, which entitles them to purchase up to an aggregate of 674,603 ADSs (10,119,045 Class A ordinary shares). The Company classified the warrants as warrant liability and the fair value of the warrant liability was US$39,877 as of the issuance date, the residual proceeds of US$118,757 was allocated to the Company’s ordinary shares. On June 23, 2022, the Company repurchased the warrants and the warrant liability was extinguished (Note 10).

At-the-Market Offering Agreements

On April 8, 2022, the Company entered into an At-the-market offering agreement, providing for a potential at-the-market equity offering program, with H.C. Wainwright & Co., LLC. For the year ended December 31, 2023, the Company issued 1,532,219 ADSs (22,983,285 Class A ordinary shares) with net proceeds of US$4,188. Effective November 10, 2023, the Company terminated its at-the-market offering agreement with H.C. Wainwright & Co., LLC.

On November 10, 2023, the Company entered into an At Market Issuance Sales Agreement with B. Riley Securities, Inc., pursuant to which the Company may issue up to US$68,000 of the ADSs. For the year ended December 31, 2023, the Company issued 31,347,044 ADSs (470,205,660 Class A ordinary shares) with net proceeds of US$61,242.

On November 24, 2023, the Company’s board of directors authorized the issuance of 125,000 Series A Convertible Preferred Shares by re-designation of the authorized but unissued Class A Ordinary Shares.

As of December 31, 2023, the authorized ordinary shares are 999,999,875,000, of which 3,772,078,667 shares were issued and 3,514,973,327 shares were outstanding. These outstanding shares consist of (1) 3,203,348,883 Class A ordinary shares and (2) 311,624,444 Class B ordinary shares, which were held by the Chairman and CEO of the Company.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Paragraph 13
-Subparagraph (h)
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Paragraph 14
-Subparagraph (b)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 235
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-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
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-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Income Taxes - Schedule of Composition of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Taxes
Current income tax expense (benefits)	$ (5,654)	$ 26,241	$ 23,113
Deferred income tax benefits	(45,686)	(7,791)	(15,348)
Income tax expense (benefits)	$ (51,340)	$ 18,450	$ 7,765

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Ordinary shares, par value	$ 0.00000005	$ 0.00000005
Ordinary shares, shares authorized	999,999,875,000	1,000,000,000,000
Ordinary shares, shares issued	3,772,078,667	2,804,138,492
Common stock shares outstanding	3,514,973,327	2,496,001,757
Treasury stocks, par value	$ 0.00000005	$ 0.00000005
Treasury stock, shares	257,105,340	308,136,735

Share-Based Compensation - Summary of Restricted Shares Activity (Details) - Restricted Share Units - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based compensation
Number of shares, Outstanding	123,791,055	137,243,670	9,040,000
Number of shares, Granted	102,323,925	62,410,200	236,768,940
Number of shares, Forfeited	(28,129,155)	(22,844,235)	(6,991,000)
Number of shares, Vested	(51,031,395)	(53,018,580)	(101,574,270)
Number of shares, Outstanding	146,954,430	123,791,055	137,243,670
Weighted average grant date fair value, Outstanding	$ 0.60	$ 0.74	$ 0.23
Weighted average grant date fair value, Granted	0.15	0.25	0.58
Weighted average grant date fair value, Forfeited	0.29	0.32	0.48
Weighted average grant date fair value, Vested	0.60	0.68	0.33
Weighted average grant date fair value, Outstanding	$ 0.35	$ 0.60	$ 0.74

Series A Convertible Preferred Shares - Pre-delivery Shares (Details) - USD ($) $ / shares in Units, $ in Thousands				12 Months Ended
	Dec. 11, 2023	Nov. 27, 2023	May 03, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Series A Convertible Preferred Shares
Proceeds from issuance of series A convertible preferred shares, net of issuance costs				$ 24,575
Excess of fair value of Series A Convertible Preferred Shares				59,199
Change in fair value of financial instruments				$ (10,918)	$ 3,795	$ 29,471
ADS
Series A Convertible Preferred Shares
Number of shares issued			4,047,620
Pre-delivery Shares
Series A Convertible Preferred Shares
Price of nominal fee received				$ 6.00
Number of shares returned				0
Fair value at issuance				$ 511
Pre-delivery Shares \| Class A ordinary shares
Series A Convertible Preferred Shares
Number of shares issued	120,000,000	120,000,000
Pre-delivery Shares \| ADS
Series A Convertible Preferred Shares
Number of shares issued	8,000,000	8,000,000
Preferred Shares
Series A Convertible Preferred Shares
Issue price per share		$ 1,000
Proceeds from issuance of series A convertible preferred shares, net of issuance costs	$ 24,575			24,575
Excess of fair value of Series A Convertible Preferred Shares				(59,199)
First Tranche Preferred Shares Financing
Series A Convertible Preferred Shares
Number of shares issued	25,000	25,000
Fair value at issuance				44,421
Fair value upon conversion				53,837
Change in fair value of financial instruments				9,416
Series A Convertible Preferred Shares Forward Purchase Liabilities
Series A Convertible Preferred Shares
Fair value at issuance				$ 38,842

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands		12 Months Ended
	Mar. 16, 2007	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2017	Dec. 31, 2020
Income Taxes
Statutory income tax rate		25.00%	25.00%	25.00%
Undistributed earnings available for distribution		$ 22,903
Withholding income tax		0
Tax loss carry forwards		$ 339,766	$ 53,652
Tax loss carry forwards period		10 years			5 years
Operating loss carry forwards expiration start year		2029
Operating loss carry forwards expiration end year		2034
Deferred tax assets valuation allowance		$ 30,042	$ 13,871	$ 2,821		$ 46,712
Canaan Creative Co Ltd [Member]
Income Taxes
Preferential tax rate		15.00%
Canaan Creative SH Co Ltd [Member]
Income Taxes
Preferential tax rate		15.00%
Income tax holiday, description		Canaan Creative (SH) is qualified as an as an integrated circuit enterprise and enjoying a 5-year tax holiday (two-year full exemption followed by three-year half reduction) beginning from 2022 after utilizing all prior years tax losses. Therefore, Canaan Creative (SH) is eligible to enjoy a preferential tax rate of 0% from 2022 to 2023 and 12.5% from 2024 to 2026.
Income tax holiday period		5 years
Income tax full exemption holiday period		2 years
Income tax half reduction holiday period		3 years
Other PRC Subsidiaries
Income Taxes
Statutory income tax rate		25.00%
Withholding income tax rate on dividends		10.00%
PRC mainland and Hong Kong subsidiaries
Income Taxes
Operating Loss Carryforwards, Limitations on Use		tax losses of US$13,478, US$140, US$2,443, US$13, US$530, US$225,867 will expire, if unused, by 2029, 2030, 2031, 2032, 2033 and 2034, respectively.
Tax Year 2019 to 2021 \| Canaan Creative Co Ltd [Member]
Income Taxes
Preferential tax rate		15.00%
Tax Year 2019 to 2021 \| Hangzhou Canaan Intelligence Information Technology Co., Ltd. [Member]
Income Taxes
Preferential tax rate		15.00%
Tax Year 2022 to 2023 \| Canaan Creative SH Co Ltd [Member]
Income Taxes
Preferential tax rate		0.00%
Tax Year 2024 to 2026 \| Canaan Creative SH Co Ltd [Member]
Income Taxes
Preferential tax rate		12.50%
2029
Income Taxes
Operating Loss Carryforwards, Expiration year		2029
2030 \| PRC mainland and Hong Kong subsidiaries
Income Taxes
Operating Loss Carryforwards, Expiration year		2030
2031 \| PRC mainland and Hong Kong subsidiaries
Income Taxes
Operating Loss Carryforwards, Expiration year		2031
2032
Income Taxes
Operating Loss Carryforwards, Expiration year		2032
2033 \| PRC mainland and Hong Kong subsidiaries
Income Taxes
Operating Loss Carryforwards, Expiration year		2033
2034 \| PRC mainland and Hong Kong subsidiaries
Income Taxes
Operating Loss Carryforwards, Expiration year		2034
Hong Kong
Income Taxes
Statutory income tax rate		16.50%	16.50%	16.50%
Hong Kong \| Other PRC Subsidiaries \| FIE
Income Taxes
Ownership percentage		25.00%
Hong Kong \| Other PRC Subsidiaries \| Maximum
Income Taxes
Withholding income tax rate		5.00%
China \| Enterprise Income Tax
Income Taxes
Statutory income tax rate	25.00%
United States
Income Taxes
Statutory income tax rate		21.00%	21.00%	21.00%
Singapore
Income Taxes
Statutory income tax rate		17.00%	17.00%	17.00%

Inventories (Tables)

12 Months Ended

Dec. 31, 2023

Inventories

Schedule of inventories


	As of December 31,
	2022	2023
Raw materials	113,306	95,065
Work in process	37,538	15,898
Finished goods	60,796	31,324
Total	211,640	142,287

Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Summary of Stock Option Activity

The following table summarizes the share options for the years ended December 31, 2021, 2022 and 2023:


		Weighted-Average	Weighted
		per Share	Average
	Number of	Exercise	Remaining	Aggregate
	shares	Price	Contractual Term	Intrinsic Value
		US$	Years	US$
Outstanding as of December 31, 2020	—	—	—	—
Granted	114,000,000	0.76	—	—
Outstanding as of December 31, 2021	114,000,000	0.76	9.10	—
Outstanding as of December 31, 2022	114,000,000	0.76	8.12	—
Granted	30,000,000	0.40	—	—
Outstanding as of December 31, 2023	144,000,000	0.69	7.53	—
Expected to vest as of December 31, 2023	144,000,000	0.69	7.53	—
Exercisable as of December 31, 2023	84,000,000	0.69	7.53	—

Summary of fair values of the share options granted

The fair values of the share options granted by the Company to employees for the year ended December 31, 2023 are as follows:


		For the Year Ended December 31,
		2023
Weighted average grant date fair value of option per share		0.53
Aggregate grant date fair value of options		75,638

Summary of assumptions used to determine the fair value of stock options

The assumptions used to estimate the fair values of the share options granted were as follows:


	For the Year Ended December 31,		For the Year Ended December 31,
	2021		2023
Risk-free rate of return ⁽¹⁾	1.25% to 1.85	%	3.85% to 3.92	%
Dividend yield ⁽²⁾	0	%	0	%
Expected volatility ⁽³⁾	136.91% to 142.01	%	124.86	%
Expected term ⁽⁴⁾	10 years		10 years
Exercise multiple ⁽⁵⁾	2.80		2.80
Fair value of ordinary share	US$3.78 per ADS to US$17.51 per ADS		US$1.79 per ADS

Restricted Share Units

Summary of Restricted Shares Activity

The following table summarizes the RSUs activity for the years ended December 31, 2021, 2022 and 2023:


	Number of	Weighted average
	shares	grant date fair value
		US$
Outstanding as of December 31, 2020	9,040,000	0.23
Granted	236,768,940	0.58
Forfeited	(6,991,000)	0.48
Vested	(101,574,270)	0.33
Outstanding as of December 31, 2021	137,243,670	0.74
Granted	62,410,200	0.25
Forfeited	(22,844,235)	0.32
Vested	(53,018,580)	0.68
Outstanding as of December 31, 2022	123,791,055	0.60
Granted	102,323,925	0.15
Forfeited	(28,129,155)	0.29
Vested	(51,031,395)	0.60
Outstanding as of December 31, 2023	146,954,430	0.35

Treasury stocks

12 Months Ended

Dec. 31, 2023

Treasury stocks

Treasury stocks

13.	Treasury stocks

2018 Equity Incentive Plan

In April 2018, the Company established a trust to hold 51,624,000 of the Company’s issued ordinary shares. These ordinary shares were contributed by the Co-Founders and employees and held in a trust (the “Trust”) for the benefit of the employees who are under the 2018 Equity Incentive Plan (Note 14).

The ordinary shares issued to the Trust are accounted for as treasury stocks of the Company and presented as such for all periods presented. The Trust does not hold any other assets or liabilities as of December 31, 2022 and 2023, nor earn any income nor incur any expenses for the years ended December 31, 2021, 2022 and 2023.

As of January 1, 2021, 18,096,900 issued ordinary shares are accounted as treasury stocks. In 2021, 5,757,945 restricted share units were transferred from treasury stock to ordinary shares. The Company did not retire any of the repurchased Class A ordinary shares in 2022 and 2023 under the 2018 Incentive Plan (Note 14).

As of December 31, 2022 and 2023, 12,338,955 and 12,338,955 issued ordinary shares are accounted as treasury stocks, respectively.

Amended 2018 Plan

In April 2021, the Board of Directors of the Company amended the 2018 Plan (the “Amended 2018 Plan”) (Note 14). In May and September 2021, the Company issued 94,927,065 Class A ordinary shares and 63,774,885 Class A ordinary shares, which were then reserved under the Amended 2018 Plan. For the year ended December 31, 2021, 95,816,325 restricted share units that have been vested were transferred from treasury stock to ordinary shares under the Amended 2018 Plan. Under the Amended 2018 Plan, the Company withholds the shares issued to the employees to meet the income tax withholding requirement upon the vesting of the Restricted share units. For the year ended December 31, 2021, the Company withheld 33,255,495 Class A ordinary shares for US$23,353 and sold 13,043,895 Class A ordinary shares for US$7,264. For the year ended December 31, 2022, the Company withheld 17,102,175 Class A ordinary shares for US$4,819 and sold 37,313,775 Class A ordinary shares for US$20,908. For the year ended December 31, 2023, the Company withheld 13,904,625 Class A ordinary shares for US$2,420 and sold 13,904,625 Class A ordinary shares for US$2,420. The Company did not retire any of the repurchased Class A ordinary shares. As of December 31, 2023 and 2022, nil and 9,867,045 issued ordinary shares are accounted as treasury stocks. For the year ended December 31, 2023, 9,867,045 restricted share units were transferred from treasury stock to ordinary shares upon vesting under the Amended 2018 Plan.

Share Repurchase Program

As of January 1, 2021, 1,719,946 outstanding ADSs (25,799,190 shares) are accounted as treasury stocks. Effective September 19, 2021, the Board of Directors approved a share repurchase program to repurchase in the open market up to US$20 million worth of its outstanding (i) American Depositary Share (“ADS”) each representing 15 Class A ordinary shares, and or (ii) Class A ordinary shares over the next 12 months starting from September 20, 2021 depending on a number of factors, including, but not limited to, price, trading volume and general market conditions, along with Canaan’s working capital requirements and general business conditions, the relevant rules under United States securities laws and regulations, and the relevant stock exchange rules. During the year ended December 31, 2021, total of 2,312,215 outstanding ADSs (34,683,225 shares) were repurchased but have not been retired with a total consideration of US$16,106, which is shown as treasury stock (Note 2(ab)).

Effective March 16, 2022, the Board of Directors approved a share repurchase program to repurchase in the open market up to US$100 million worth of its outstanding (i) American depositary shares, each representing 15 Class A ordinary shares, and/or (ii) Class A ordinary shares over the next 24 months starting from March 16, 2022 depending on a number of factors, including, but not limited to, price, trading volume and general market conditions, along with Canaan’s working capital requirements and general business conditions, the relevant rules under United States securities laws and regulations, and the relevant stock exchange rules. During the year ended December 31, 2022, total of 10,307,665 outstanding ADSs (154,614,975 shares) were repurchased but have not been retired with a total consideration of US$37,379, which is shown as treasury stock (Note 2(ab)). During the year ended December 31, 2023, no outstanding ADSs were repurchased. For the year ended December 31, 2023, 41,164,350 restricted share units were transferred from treasury stock to ordinary shares upon vesting.

As of December 31, 2023, a total of 173,933,040 repurchased ordinary shares are accounted as treasury stocks.

Share-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands		1 Months Ended		12 Months Ended
	Sep. 30, 2021	May 31, 2021	Apr. 30, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based compensation
Number of options granted				30,000,000		114,000,000
2018 Equity Incentive Plan \| Common Class A
Share-based compensation
Share-Based Compensation Arrangement By Share-Based Payment Award Cumulative Annual Increase Percentage			15.00%
Share-based compensation arrangement by share-based payment award, percentage of outstanding stock maximum			3.00%
Number of additional shares authorized for issuance under share-based payment arrangement	63,774,885	94,927,065
Amended 2018 Plan \| Common Class A
Share-based compensation
Issuance of ordinary shares (in shares)				13,904,625	37,313,775	13,043,895
Share Options
Share-based compensation
weighted-average period for recognization of unrecognized compensation expense related to share options				20 months 6 days
Unrecognized compensation expense related to share options				$ 22,955
Restricted Share Units
Share-based compensation
Restricted share units granted				102,323,925	62,410,200	236,768,940
Unrecognized compensation expense				$ 32,933
weighted-average period for recognization of unrecognized compensation expense related to share options				36 months 13 days
Restricted Share Units \| Amended 2018 Plan
Share-based compensation
Restricted share units granted				102,323,925
Requisite service period				5 years

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Inventories
Raw materials	$ 95,065	$ 113,306
Work in process	15,898	37,538
Finished goods	31,324	60,796
Total	$ 142,287	$ 211,640

Accrued Liabilities and Other Liabilities

12 Months Ended

Dec. 31, 2023

Accrued Liabilities and Other Liabilities

Accrued Liabilities and Other Liabilities

9.	Accrued liabilities and other liabilities


	As of December 31,
	2022	2023
Accrued liabilities and other current liabilities
Provision for reserve for inventory purchase commitments (Note a)	10,890	20,706
Salary and welfare payable	20,744	19,623
Customer deposits	—	7,185
Other tax payables	8,057	7,019
Customer refund	4,226	3,812
VAT received from customers related to contract liabilities	19	1,429
Warranty reserve (Note b)	1,716	878
Others	2,697	3,588
Total	48,349	64,240
Other non-current liabilities
Deferred government grant	—	9,191
Refund from depository bank – non-current	598	516
Total	598	9,707

Note a: The Company entered into several contracts to purchase foundry service. These contracts represent firm purchase commitments which are evaluated for potential losses. As of December 31, 2022 and 2023, the Company’s purchase obligation to third-party suppliers for foundry service was US$66,868 and US$42,904, respectively.

In connection with the preparation of the Company’s consolidated financial statements for the year ended December 31, 2023 the Company assessed the loss contingency under the foundry service contracts taking into account the estimated selling price of mining equipment. The provision was determined by applying a methodology similar to that used in the lower of cost or net realizable value with respect to inventory, using estimates of the costs to convert raw materials into final products in order to determine net realizable value. For the year ended December 31, 2022 and 2023, a provision of US$10,890 and US$9,816 has been recognized in cost of revenues for the Company’s inventory purchase commitments under foundry service contracts as a result of the decline in the estimated selling price of mining equipment based on the most recent subsequent selling price.

Note b: For mining equipment, the Company provides its customers for 360 days warranty, subject to certain conditions, such as normal use. The Company provides for the estimated costs of warranties at the time revenue is recognized. Factors that affect the Company’s warranty obligation include product defect rates and costs of repair or replacement.

Movement of provision for warranty is as follows:


	For the year ended December 31,
	2022	2023
Accrued warranty—beginning of year	2,827	1,716
Accrual for warranties issued during the year	1,896	1,902
Warranty claims paid	(1,167)	(1,532)
Warranty expired	(1,632)	(980)
Foreign currency translation adjustment	(208)	(228)
Accrued warranty—end of year	1,716	878

Accrued Liabilities and Other Liabilities - Schedule of Accrued Liabilities and Other Liabilities (Parenthetical) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Accrued Liabilities and Other Liabilities
Provision for reserve for inventory purchase commitments	$ 9,816	$ 10,890
Foundry service
Accrued Liabilities and Other Liabilities
Provision for reserve for inventory purchase commitments	9,816	10,890
Purchase obligation	$ 42,904	$ 66,868

Accrued Liabilities and Other Liabilities - Schedule of Accrued Liabilities and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Accrued Liabilities and Other Liabilities
Provision for reserve for inventory purchase commitments (Note a)	$ 20,706	$ 10,890
Salary and welfare payable	19,623	20,744
Customer deposits	7,185	0
Other tax payables	7,019	8,057
Customer refund	3,812	4,226
VAT received from customers related to contract liabilities	1,429	19
Warranty reserve (Note b)	878	1,716
Others	3,588	2,697
Total	64,240	48,349
Other non-current liabilities
Deferred government grant	9,191	0
Refund from depository bank - non-current	516	598
Total	$ 9,707	$ 598

Warrants - Summary of Significant Unobservable Inputs Used In Calculation Of Warrant Liability (Details) - Warrants To Purchase Common Stock	Jun. 23, 2022 Y	Dec. 31, 2021 Y
Risk Free Rate \| Maximum
Warrants
Fair value of the warrant liability	2.63	0.81
Risk Free Rate \| Minimum
Warrants
Fair value of the warrant liability	2.32	0.37
Volatility \| Maximum
Warrants
Fair value of the warrant liability	140.39	127.93
Volatility \| Minimum
Warrants
Fair value of the warrant liability	126.66	131.47
Expected dividend yield
Warrants
Fair value of the warrant liability	0	0
Expected term \| Maximum
Warrants
Fair value of the warrant liability	(2.1)	(3)
Expected term \| Minimum
Warrants
Fair value of the warrant liability	1.9	2.3

Condensed Financial Information of the Parent Company

12 Months Ended

Dec. 31, 2023

Condensed financial information of the parent company

Condensed financial information of the parent company

19.	Condensed financial information of the parent company

Rules 12-04(a) and 4-08(e)(3) of Regulation S-X require condensed financial information as to the financial position, cash flows and results of operations of a parent company as of and for the same periods for which the audited consolidated financial statements have been presented when the restricted net assets of the consolidated and unconsolidated subsidiaries together exceed 25% of consolidated net assets as of the end of the most recently completed fiscal year.

The following condensed financial statements of the Parent Company have been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the Parent Company used the equity method to account for its investment in its subsidiaries. Such investment is presented on the separate condensed balance sheets of the Parent Company as “Receivables from subsidiaries”. The Parent Company, its subsidiaries were included in the consolidated financial statements whereby the inter-company balances and transactions were eliminated upon consolidation. The Parent Company’s share of income (loss) from its subsidiaries is reported as “share of income (loss) from subsidiaries” in the condensed financial statements.

The Parent Company is a Cayman Islands company and, therefore, is not subject to income taxes for all years presented. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted.

As of December 31, 2022 and 2023, there were no material commitments or contingencies, significant provisions for long-term obligations or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any.

For the purpose of the Company’s stand-alone financial statements, its investments in subsidiaries were reported using the equity method of accounting. The Company’s share of income (loss) from its subsidiaries was reported as a share of income (loss) of subsidiaries in the accompanying parent company only financial statements. Ordinarily, under the equity method, an investor in an equity method investee would cease to recognize its share of the losses of an investee once the carrying value of the investment has been reduced to nil absent an undertaking by the investor to provide continuing support and fund losses. For the purpose of the parent only financial information, the Company has continued to reflect its share, based on its proportionate interest, of the losses of its subsidiaries regardless of the carrying value of the investment even though the Company is not obligated to provide continuing support or fund losses.

Condensed Financial Information of the Parent Company

CONDENSED BALANCE SHEETS


	As of December 31,
	2022	2023
	US$	US$
ASSETS
Current assets:
Cash	5,682	6,902
Prepayments and other current assets	180	644
Total current assets	5,862	7,546
Non-current assets:
Investments in and receivables from subsidiaries	602,798	382,605
Total assets	608,660	390,151
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Preferred shares forward contract liabilities	—	40,344
Refund from depository bank – current	316	580
Other payable	80	524
Non-current liabilities:
Refund from depository bank – non-current	598	516
Total liabilities	994	41,964
Shareholders’ equity:
Ordinary shares	—	—
Subscriptions receivable from shareholders	—	—
Treasury stocks	(57,055)	(57,055)
Additional paid-in capital	492,220	653,860
Statutory reserves	14,892	14,892
Accumulated other comprehensive loss	(36,913)	(43,879)
Retained earnings (accumulated deficit)	194,522	(219,631)
Total shareholders’ equity	607,666	348,187
Total liabilities and shareholders’ equity	608,660	390,149

CONDENSED STATEMENTS OF COMPREHENSIVE LOSS


	For the year ended December 31,
	2021	2022	2023
	US$	US$	US$
Operating expenses:
General and administrative expenses	(1,033)	(3,120)	(4,538)
Loss from operations	(1,033)	(3,120)	(4,538)
Interest income	—	1	323
Other income, net	316	316	337
Change in fair value of financial instruments	29,471	3,795	(10,918)
Excess of fair value of Series A Convertible Preferred Shares	—	—	(59,199)
Share of income (losses) from subsidiaries	356,491	58,734	(340,158)
Net income (loss)	385,245	59,726	(414,153)
Foreign currency translation adjustment, net of nil tax	(3,432)	14,444	(6,966)
Total comprehensive income (loss)	381,813	74,170	(421,119)

CONDENSED STATEMENTS OF CASH FLOWS


	For the year ended December 31,
	2021	2022	2023
	US$	US$	US$
Cash flows from operating activities
Receipt of refund from depository bank	—	—	520
Other cash used in operating activities	(1,014)	(3,078)	(4,459)
Net cash used in operating activities	(1,014)	(3,078)	(3,939)
Cash flows from investing activities
Decrease (increase) in receivables from subsidiaries	(136,643)	43,869	(84,760)
Net cash provided by (used in) investing activities	(136,643)	43,869	(84,760)
Cash flows from financing activities
Repurchase of warrants	—	(6,358)	—
Payment for repurchase of ordinary shares	(16,240)	(33,643)	—
Prepayment under share repurchase agreement	(90)	—	—
Payment for cost of issuance	(81)	—	—
Proceeds from issuance of ordinary shares and warrants	158,634	—	—
Proceeds from issuance of ordinary shares, net of issuance costs	—	—	65,430
Proceeds from issuance of Series A Convertible Preferred Shares, net of issuance costs	—	—	24,575
Net cash provided by (used in) financing activities	142,223	(40,001)	90,005
Net increase in cash	4,566	790	1,306
Effect of exchange rate changes on cash	251	52	(86)
Cash, beginning of year	23	4,840	5,682
Cash, end of year	4,840	5,682	6,902

Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Leases
Weighted-average remaining lease term Operating leases	1 year 2 months 12 days	1 year 10 months 24 days	2 years 4 months 24 days
Weighted-average discount rate Operating lease	4.55%	4.58%	5.17%

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current assets:
Cash	$ 96,154	$ 101,551
Accounts receivable, net	2,997
Inventories	142,287	211,640
Prepayments and other current assets	122,242	242,523
Total current assets	363,680	555,714
Non-current assets:
Cryptocurrency	28,342	12,531
Property, equipment and software, net	29,466	85,350
Operating lease right-of-use assets	1,690	4,250
Deferred tax assets	66,809	21,740
Other non-current assets	486	2,504
Non-current financial investment	2,824	2,872
Total non-current assets	129,617	129,247
Total assets	493,297	684,961
Current liabilities:
Accounts payable	6,245	16,703
Contract liabilities	19,614	662
Income tax payable	3,534	7,228
Accrued liabilities and other current liabilities	64,240	48,349
Operating lease liabilities, current	1,216	2,314
Preferred shares forward contract liability	40,344
Total current liabilities	135,193	75,256
Non-current liabilities:
Operating lease liabilities, non-current	210	1,441
Other non-current liabilities	9,707	598
Total liabilities	145,110	77,295
Contingencies (Note 17)
Shareholders' equity:
Treasury stocks (US$0.00000005 par value; 308,136,735 and 257,105,340 shares as of December 31, 2022 and 2023, respectively)	(57,055)	(57,055)
Additional paid-in capital	653,860	492,220
Statutory reserves	14,892	14,892
Accumulated other comprehensive loss	(43,879)	(36,913)
Retained earnings (accumulated deficit)	(219,631)	194,522
Total shareholders' equity	348,187	607,666
Total liabilities and shareholders' equity	$ 493,297	$ 684,961

Inventories (Details) - USD ($) $ in Thousands	12 Months Ended
Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Inventories
Inventory write-down	$ 174,838	$ 69,524	$ 7,859

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Taxes

Income Taxes

15.	Income Taxes

(a)

Cayman Islands

Under the current tax laws of Cayman Islands, the Company is not subject to income, corporation or capital gains tax, and no withholding tax is imposed upon the payment of dividends.

(b)

Singapore

The Company’s subsidiaries incorporated in Singapore are subject to profits or income tax rates of 17.0%, on their estimated assessable profits for the years ended December 31, 2021, 2022 and 2023. Dividends income received from subsidiaries in mainland China are not subject to Singapore profits or income tax.

(c)

Hong Kong and United States

The Company’s subsidiaries incorporated in Hong Kong and United States are subject to profits or income tax rates of 16.5% and 21.0%, respectively, on their estimated assessable profits for the years ended December 31, 2021, 2022 and 2023. Dividends income received from subsidiaries in mainland China are not subject to Hong Kong and United States profits or income tax.

(d)

PRC Enterprise Income Tax (“EIT”)

On March 16, 2007, the National People’s Congress of the PRC enacted an Enterprise Income Tax Law (“EIT Law”), under which Foreign Investment Enterprises (“FIEs”) and domestic companies would be subject to EIT at a uniform rate of 25%. The EIT law became effective on January 1, 2008.

Canaan Creative Co., Ltd. (“Canaan Creative”) obtained its High and New Technology Enterprises (“HNTE”) certificate with a valid period of three years in 2019. Therefore, Canaan Creative is eligible to enjoy a preferential tax rate of 15% from 2019 to 2021 to the extent it has taxable income under the EIT Law, as long as it maintains the HNTE qualification and duly conducts relevant EIT filing procedures with the relevant tax authority. In October 2022, Canaan Creative received approval from the tax authority on the renewal of its HNTE status which entitled it to the preferential income tax rate of 15% effective retroactively from 2022 to 2024.

Hangzhou Canaan Intelligence Information Technology Co., Ltd. (“Hangzhou Canaan”) obtained its HNTE certificate with a valid period of three years in 2019, and therefore is eligible to enjoy a preferential tax rate of 15% from 2019 to 2021 to the extent it has taxable income under the EIT Law, as long as it maintains the HNTE qualification and duly conducts relevant EIT filing procedures with the relevant tax authority. Thereafter, Hangzhou Canaan did not renew its HNTE certificate or integrated circuit enterprise qualification.

Canaan Creative (SH) Co., Ltd. (“Canaan Creative (SH)”) obtained its High and New Technology Enterprises (“HNTE”) certificate with a valid period of three years in 2022. Therefore, Canaan Creative (SH) is eligible to enjoy a preferential tax rate of 15% from 2022 to 2024 to the extent it has taxable income under the EIT Law, as long as it maintains the HNTE qualification and duly conducts relevant EIT filing procedures with the relevant tax authority. In addition, in accordance with Caishui (2016) No. 49 issued by the Stated Tax Bureau on May 4, 2016, Canaan Creative (SH) is qualified as an as an integrated circuit enterprise and enjoying a 5-year tax holiday (two-year full exemption followed by three-year half reduction) beginning from 2022 after utilizing all prior years tax losses. Therefore, Canaan Creative (SH) is eligible to enjoy a preferential tax rate of 0% from 2022 to 2023 and 12.5% from 2024 to 2026.

The Company’s other PRC subsidiaries are subject to the statutory income tax rate of 25%.

(e)

PRC Withholding Income Tax on Dividends

The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located.”

The EIT Law also imposes a withholding income tax of 10% on dividends distributed by a FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The Cayman Islands, where the Company incorporated, does not have such tax treaty with China. According to the arrangement between Mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by a FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% if the immediate holding company in Hong Kong owns directly at least 25% of the shares of the FIE and could be recognized as a Beneficial Owner of the dividend from PRC tax perspective.

As of December 31, 2023, the aggregated amount of undistributed earnings of the Company entities located in the PRC that are available for distribution to the Company were US$22,903. The Company plans to indefinitely reinvested undistributed earnings earned from its PRC subsidiaries in its operations in the PRC. Therefore, no withholding income tax for undistributed earnings of its subsidiaries were provided as of December 31, 2023.

Income (loss) before income tax expense consisted of:


	For the Years Ended December 31,
	2021	2022	2023
Mainland China	290,666	126,902	(251,871)
United States of America	(951)	(15,858)	(79,753)
Cayman	30,544	2,024	(69,376)
Singapore	1,013	(16,644)	(8,970)
Others	(4,421)	(8,090)	(55,523)
Total	316,851	88,334	(465,493)

A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows:


	For the Years Ended December 31,
	2021		2022		2023
PRC statutory income tax rates	25.0	%	25.0	%	(25.0)	%
Permanent book-tax difference	1.4	%	(2.4)	%	(1.9)	%
Share-based compensation	3.4	%	5.5	%	1.0	%
Super deduction of R&D expense	(2.6)	%	(14.0)	%	(2.9)	%
Others	0.6	%	6.1	%	0.0	%
Different tax rates in other jurisdictions	(2.2)	%	2.0	%	7.8	%
Effect of tax holiday	(7.8)	%	(16.9)	%	4.7	%
Change in valuation allowance	(14.0)	%	12.6	%	3.4	%
Total	2.4	%	20.3	%	(11.0)	%
Effects of tax holidays entitled by the PRC subsidiaries	24,832		15,354		21,998
Effects of tax holidays entitled by the PRC subsidiaries on basic income (loss) per Class A and Class B ordinary share (US$ cent per share)	0.98		0.60		0.85

Composition of income tax expense

The current and deferred portions of income tax expense included in the consolidated statements of comprehensive income (loss) are as follows:


	For the Years Ended December 31,
	2021	2022	2023
Current income tax expense (benefits)	23,113	26,241	(5,654)
Deferred income tax benefits	(15,348)	(7,791)	(45,686)
Income tax expense (benefits)	7,765	18,450	(51,340)

Deferred tax assets and liabilities

Deferred taxes were measured using the enacted tax rates for the periods in which they are expected to be reversed. The tax effects of temporary differences that give rise to the deferred tax asset balances as of December 31, 2022 and 2023 are as follows:


	As of December 31,
	2022	2023
Deferred tax assets
Tax losses carried forward	10,290	57,519
Write-down of inventories	15,540	26,608
Property, equipment and software	5,012	6,597
Share-based compensation	4,427	5,646
Warranty reserve	139	281
Operating lease right-of-use assets	—	260
Allowance for doubtful accounts	203	200
Total gross deferred tax assets	35,611	97,111
Less: Valuation allowance	(13,871)	(30,042)
Deferred tax assets, net of valuation allowance	21,740	67,069
Deferred tax liabilities
Operating lease liabilities	—	(260)
Total gross deferred tax liabilities	—	(260)
Net deferred tax assets	21,740	66,809

As of December 31, 2022 and 2023, the Company had tax loss carry-forwards of approximately US$53,652 and US$339,766 which arose from its PRC and offshore subsidiaries. Most of the PRC subsidiaries are qualified as HNTE or technology small and medium enterprise (“SMEs”), the carryforwards period for net operating losses under the EIT Law is changed from five years to ten years. The net operating loss carryforwards by the PRC mainland companies will expire in varying amounts between 2029 and 2034. PRC mainland companies tax losses of US$13,478, US$140, US$2,443, US$13, US$530, US$225,867 will expire, if unused, by 2029, 2030, 2031, 2032, 2033 and 2034, respectively. Other than the expiration, there are no other limitations or restrictions upon the Company’s ability to use these operating loss carryforwards.

Valuation allowance is provided against deferred tax assets when the Company determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Company considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. Valuation allowance was provided for tax loss carry-forward because it was more likely than not that such deferred tax assets will not be realized due to lack of profitable history to support the Company’s estimate of its future taxable income. If events occur in the future that allow the Company to realize part or all its deferred income tax, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur.

As of December 31, 2022 and 2023, valuation allowances of US$13,871 and US$30,042 were provided because it was more likely than not that the Company will not be able to utilize certain tax loss carry-forwards and other deferred tax assets generated by its subsidiaries. If events occur in the future that allow the Company to realize more of its deferred tax assets than the presently recorded amount, an adjustment to the valuation allowances will increase income when those events occur.

Movement of valuation allowance is as follows:


	For the Years Ended December 31,
	2021	2022	2023
Beginning balance	46,712	2,821	13,871
Additions (decreases) during the year	(43,891)	11,050	16,171
Ending balance	2,821	13,871	30,042

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2022 and 2023, the Company did not have any significant unrecognized uncertain tax positions.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
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-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Summary of significant accounting policies - Schedule of Estimated Useful Lives (Details)	Dec. 31, 2023
Leasehold Improvements
Property, Equipment and Software
Estimated useful lives	us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember
Computers and Electronic Equipment \| Minimum
Property, Equipment and Software
Estimated useful lives	3 years
Computers and Electronic Equipment \| Maximum
Property, Equipment and Software
Estimated useful lives	5 years
Mechanical Equipment
Property, Equipment and Software
Estimated useful lives	5 years
Mining Equipment
Property, Equipment and Software
Estimated useful lives	1 year 6 months
Motor Vehicles
Property, Equipment and Software
Estimated useful lives	5 years
Software
Property, Equipment and Software
Estimated useful lives	3 years

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands					12 Months Ended
	Jan. 22, 2024	Dec. 11, 2023	Nov. 27, 2023	May 03, 2021	Dec. 31, 2023
Subsequent events
Net proceeds					$ 24,575
ADS
Subsequent events
Issuance of ordinary shares in at-the-market offering, net of offering cost (in shares)				4,047,620
Pre-delivery Shares \| ADS
Subsequent events
Issuance of ordinary shares in at-the-market offering, net of offering cost (in shares)		8,000,000	8,000,000
Pre-delivery Shares \| Class A ordinary shares
Subsequent events
Issuance of ordinary shares in at-the-market offering, net of offering cost (in shares)		120,000,000	120,000,000
Subsequent events \| ADS
Subsequent events
Issuance of ordinary shares in at-the-market offering, net of offering cost (in shares)	2,800,000
Subsequent events \| Class A ordinary shares
Subsequent events
Issuance of ordinary shares in at-the-market offering, net of offering cost (in shares)	42,000,000
Subsequent events \| Series A Convertible Preferred Shares Forward Purchase Liabilities
Subsequent events
Issuance of ordinary shares in at-the-market offering, net of offering cost (in shares)	50,000
Issue price per share	$ 1,000
Net proceeds	$ 49,860
Number of shares converted	45,000