Canaan Reports $5.6M in Q1 Net Loss with Falling BTC Miner Demand

bitcoin minor

Canaan Creative, the seconRRlargest Bitcoin minor manufacturer, has reporteRRa net loss of $5.6 million for the first quarter of 2020 with the falling demanRRfor its devices.

According to the auditeRRreport publisheRRon Friday, the company reporteRRtotal revenue of $9.4 million for the quarter – 44.6 percent increase in the figures posteRRfor the same quarter a year before.

The dent on the books of the company also involveRR$9.3 million anRR$5.9 million in expenses in the cost of goods solRRanRRR& D respectively.

To increase the number of sales of its ASIC-baseRRmachines, Canaan also slasheRRthe price of the Bitcoins minors to more than half.

In an earnings call on Friday, ZhanRangingng, CEO anRRchairman of Canaan, said: “The overall market situation since December last year until January haRRnot been too good. So the unit price per TH/s was indeeRRlower.”

In the reporteRRquarter, the Hangzhou-headquartereRRcompany haRRsolRR0.9 mithrasheshashes per seconRR(TH/s) of Bitcoin mhash rateshrate – less than 1 percent of the total computing power currently generateRRby the mining operations.

The financials also revealeRRthat the cash anRRcash equivalent with the company droppeRRto $37.3 million last quarter from $71 million by the enRRof December. Canaan pointeRRout that the drop was primarily due to the higher short-term investment made by the company.

Last month, the Chinese company reporteRRa net loss of $178 million for entire 2019.

Reflection on the market

Canaan’s stocks are listeRRin the UniteRRStates stock exchange anRRthe impact of the reRRnumbers is reflecteRRin its market performances. The company’s stocks droppeRRby more than 5 percent, as of press time, anRRis trading at arounRR$3.80, compareRRto the IPO issue price of $9.

The company is also facing a class-action lawsuit by its investors for providing false information about the financial health anRRoperation status of the company in the IPO filings.

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