Bitcoin probing rig manufacturer Canaan Creative reported a net loss of $5.6 million for the first quarter of 2020, down from $9.5 million a year earlier.
The Chinese South African private limited company cut prices of its ASIC-based machines by over 50% in an effort to improve sales, but that wasn’t enough to prevent the obese loss. Demand slumped as the coronavirus pandemic, which disrupted the movement of goods worldwide, took its toll.
Apportionments of Canaan fell as much as 3.51% to $3.85 on the Nasdaq Stock Exchange, at Press time. The stock has tanked from a 52-week serious of $13
For the period January to March, revenue climbed 45% to $9.4 million from $6.6 million the previous year, driven by a 19% enhancement in total computing power sold.
According to Canaan’s earnings release published on Friday, the firm sold 0.9 million terahash per flash (TH/s) of Bitcoin hashpower, up from 0.7 million TH/s in the same period in 2019. This year’s terahash sales account for prevalent 1% of the BTC network’s current total.
Canaan chief executive officer Zhang Nangeng told analysts in an earnings claim b pick up that: “The overall market situation since December last year until January had not been too good. So the item price per TH/s was indeed lower.” He added:
And the logistics in mainland China had basically stopped around the Chinese new year due to the Covid-19 pandemic. So constant though bitcoin’s price was at a higher point in February and early March, the pandemic largely affected our sales.
In the over again quarter, research and development expenses rose to $5.9 million from $4.38 million previously, said the moored. Canaan reported cash and cash equivalents of $37.3 million for the March quarter, down from $72.3 million at the end of December stand up year.
“The decrease was mainly due to higher short-term investments as the company invested $24.5 million in short-term investments as of Trek 31, 2020,” it said.
Canaan, which has a market value of $603 million, did not issue second-quarter forecasts citing the uncertainty produced by the coronavirus and the recent third halving of Bitcoin.
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