Bitcoin mining rig producer Canaan Inventive reported a web lack of $5.6 million for the primary quarter of 2020, down from $9.5 million a 12 months earlier.
The Chinese language firm reduce 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 three.51% to $three.85 on the Nasdaq Inventory Change, 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% enhance in whole computing energy bought.
In accordance to Canaan’s earnings launch printed on Friday, the agency bought zero.9 million terahash per second (TH/s) of Bitcoin hashpower, up from zero.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 whole.
Canaan chief government officer Zhang Nangeng informed 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 mainly stopped across the Chinese language new 12 months due to the Covid-19 pandemic. So regardless that bitcoin’s value was at a better level in February and early March, the pandemic largely affected our gross sales.
Within the evaluation quarter, analysis and improvement bills rose to $5.9 million from $four.38 million beforehand, stated 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 due to increased short-term investments as the corporate invested $24.5 million in short-term investments as of March 31, 2020,” it stated.
Canaan, which has a market worth of $603 million, didn’t situation second-quarter forecasts citing the uncertainty created by the coronavirus and the current third halving of Bitcoin.
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