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Canaan Cuts Losses for Second Successive Quarter, Down To $2.4M in Q2; Demand Remains Weak

Canaan Cuts Losses for Second Successive Quarter, Down To $2.4M in Q2; Demand Remains Weak

Canaan Creative, the Chinese maker of bitcoin mining {hardware}, reported a internet lack of $2.four million in the course of the second quarter of 2020, down from $5.6 million within the earlier quarter. It is the second consecutive quarter of narrowing losses for the agency, hit exhausting by falling demand amid the Covid-19-induced international recession.

For the three months to June 30, income soared 160% to $25.2 million from $9.6 million the quarter earlier than, pushed by a close to 200% improve in complete computing energy offered.

According to Canaan’s earnings launch of August 31, the Beijing-based firm offered 2.6 million terahash per second (TH/s) of Bitcoin hashpower, up from 0.9 million TH/s in the course of the first quarter. Year-over-year, complete computing energy offered declined 18% from 3.2 million TH/s.

Canaan Cuts Losses for Second Successive Quarter, Down To $2.4M in Q2; Demand Remains WeakThe Nasdaq listed inventory (NASDAQ: CAN) for Canaan Inc., on September 2, 2020.

Shares of Canaan fell 0.72% to $2.08 on the Nasdaq Stock Exchange, on the time of writing. The inventory has tumbled greater than 80% since itemizing on the trade final November. Then, it traded at a excessive of $13.

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Canaan chief govt officer Nangeng Zhang commented: “During the second quarter of 2020, the Covid-19 pandemic continued to influence the lives of individuals world wide and the Bitcoin halving occasion additionally brought about vital volatility in bitcoin costs.” Zhang added:

We are assured that our…pipeline of next-generation merchandise will proceed to maintain our development momentum sooner or later.

In the overview quarter, analysis and improvement bills declined to $3.7 million from $5.9 million beforehand, mentioned the agency, which manufactures the Avalon vary of ASIC bitcoin mining chips.

Canaan reported money and money equivalents of $22.2 million for the June quarter, down from $37.Three million in Q1. The firm mentioned the decline is a results of increased short-term investments, which amounted to a complete of $49.2 million by the top of June.

For the second quarter working, Canaan didn’t difficulty steering for the subsequent three buying and selling months, citing “continued uncertainty from the quickly altering international setting associated to the Covid-19 pandemic and corresponding financial downturn.”

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What do you concentrate on Canaan’s persevering with losses? Let us know within the feedback part under.

The submit Canaan Cuts Losses for Second Successive Quarter, Down To $2.4M in Q2; Demand Remains Weak appeared first on Bitcoin News.

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