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Canaan Narrows Q1 Loss to $5.6 Million Amid Weakening Demand for Mining Hardware

Canaan Narrows Q1 Loss to $5.6 Million Amid Weakening Demand for Mining Hardware

Bitcoin mining rig producer Canaan Creative reported a internet lack of $5.6 million for the primary quarter of 2020, down from $9.5 million a 12 months earlier.

The Chinese firm minimize costs of its ASIC-based machines by over 50% in an effort to enhance gross sales, however that wasn’t sufficient to forestall the heavy loss. Demand slumped because the coronavirus pandemic, which disrupted the motion of products worldwide, took its toll.

Shares of Canaan fell as a lot as 3.51% to $3.85 on the Nasdaq Stock Exchange, at Press time. The inventory has tanked from a 52-week excessive of $13

For the interval January to March, income climbed 45% to $9.Four million from $6.6 million the earlier 12 months, pushed by a 19% improve in complete computing energy bought.

According to Canaan’s earnings launch revealed on Friday, the agency bought 0.9 million terahash per second (TH/s) of Bitcoin hashpower, up from 0.7 million TH/s in the identical interval in 2019. This 12 months’s terahash gross sales account for about 1% of the BTC community’s present complete.

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Canaan chief govt officer Zhang Nangeng advised analysts in an earnings name that: “The general market scenario since December final 12 months till January had not been too good. So the unit value per TH/s was certainly decrease.” He added:

And the logistics in mainland China had principally stopped across the Chinese new 12 months because of the Covid-19 pandemic. So though bitcoin’s value was at the next level in February and early March, the pandemic largely affected our gross sales.

In the evaluate quarter, analysis and improvement bills rose to $5.9 million from $4.38 million beforehand, mentioned the agency. Canaan reported money and money equivalents of $37.Three million for the March quarter, down from $72.Three million on the finish of December final 12 months.

“The lower was primarily resulting from increased short-term investments as the corporate invested $24.5 million in short-term investments as of March 31, 2020,” it mentioned.

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Canaan, which has a market worth of $603 million, didn’t subject second-quarter forecasts citing the uncertainty created by the coronavirus and the current third halving of Bitcoin.

What do you consider Canaan’s monetary outcomes? Let us know within the feedback part under.

The publish Canaan Narrows Q1 Loss to $5.6 Million Amid Weakening Demand for Mining Hardware appeared first on Bitcoin News.

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