Canaan Artistic, the Chinese language 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 in the earlier quarter. It’s the second consecutive quarter of narrowing losses for the agency, hit arduous 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% enhance in whole computing energy bought.
Based on Canaan’s earnings launch of August 31, the Beijing-based firm bought 2.6 million terahash per second (TH/s) of Bitcoin hashpower, up from zero.9 million TH/s in the course of the first quarter. Yr-over-year, whole computing energy bought declined 18% from three.2 million TH/s.
Shares of Canaan fell zero.72% to $2.08 on the Nasdaq Inventory Alternate, on the time of writing. The inventory has tumbled greater than 80% since itemizing on the change final November. Then, it traded at a excessive of $13.
Canaan chief government officer Nangeng Zhang commented: “Throughout the second quarter of 2020, the Covid-19 pandemic continued to influence the lives of individuals world wide and the Bitcoin halving occasion additionally induced vital volatility in bitcoin costs.” Zhang added:
We’re assured that our…pipeline of next-generation merchandise will proceed to maintain our progress momentum in the long run.
Within the evaluate quarter, analysis and growth bills declined to $three.7 million from $5.9 million beforehand, stated 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 corporate stated the decline is a results of greater 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 concern steerage 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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