Bitcoin Mining Giant Canaan Reports 417% Increase in Gross Profit

Bitcoin Mining Giant Canaan Reports 417% Increase in Gross Profit

Bitcoin mining {hardware} producer Canaan has recorded a web lack of $5.6 million in Q1 2020, regardless of seeing an enormous enhance in earnings. According to the corporate’s newly launched monetary report, its gross revenue elevated by 417% from Q1 2019, whereas whole web revenues elevated by 44%. 
Unaudited Report Shows Canaan Suffered Huge Losses in Q1
According to an earnings report launched earlier at the moment, mining {hardware} producer Canaan has recorded a $5.6 million loss within the first fiscal quarter of the 12 months. The monetary outcomes revealed by the corporate finish with Mar. 31 and embody each working and monetary highlights. 
The Bitcoin firm’s web loss for Q1 2020, whereas excessive at 39.9 million yuan, nonetheless represents a big lower from the 67.9 million yuan loss the corporate reported in Q1 2019. 
On the opposite hand, the corporate’s whole web income noticed a big enhance final quarter, with the report stating that it grew by 44.6% 12 months over 12 months to 68.three million yuan, or $9.6 million. The firm reported a web income of 67.9 million yuan in Q1 2019.
“Despite dealing with growing macroeconomic uncertainties, we carried by our progress momentum to ship better-than-expected monetary outcomes for the primary quarter of 2020,“ stated Quanfu Hong, Canaan’s chief monetary officer. 
Canaan Reports a Fourfold Increase in Gross Profit
In the corporate’s report, Hong defined that Canaan’s web income enhance was a direct results of a rise within the whole computing energy offered and the common promoting worth per terrahash over the last quarter. 
The report additionally cited that there was a 417% enhance in gross earnings at Canaan 12 months over 12 months, with the corporate pocketing 2.four million yuan, or round $330,000. The firm earned 500,000 yuan, or round $70,000, through the first quarter of final 12 months. 
Zhang Nangeng, the CEO and chairman of Canaan, stated in an earnings name that the general scenario within the mining market hasn’t been “too good” final 12 months, which is why the corporate lowered the worth of its mining {hardware} by greater than 50%. Many have additionally attributed an absence of curiosity in mining tools because of the Bitcoin halving as the principle driving drive behind Canaan’s poor efficiency.
Mining tools demand will rise once more for Canaan if it is ready to keep forward of the innovation within the mining tools manufacturing curve. The agency’s largest competitor in Bitcoin startup Bitmain continues to be an trade chief.

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