Bitcoin miner manufacturer Canaan shrinks its net loss by 95% in Q1 2020


Canaan, a Nasdaq-listed bitcoin mining machine manufacturer, saw a slight uptick in its business in the first quarter of 2020 after a disappointing performance in 2019. 

In a quarterly filing with the Securities and Exchange Commission (SEC), the Hangzhou, China-based company reported a total net loss of $5.6 million in Q1, representing a 95% drop from Q4 last year (when it reported a total net loss of $114.6 million). The number is also 41% lower compared to Q1 2019. 

Despite the narrowed loss, however, Canaan’s total revenues in Q1 contracted significantly, sliding from $66.5 million in the previous quarter to $9.6 million this quarter.

The company seems to have compensated for the revenue decline with a better profit margin. In Q4 last year, Canaan posted a gross loss of $96.7 million, calculating to a -145% profit margin. However, the company reversed the downward trend this quarter with a gross profit of $336,000 on a 3% margin. 

According to the filing, the firm’s year-over-year revenue growth was “driven by increases in total computing power sold and the average selling price per Thash in the period.” 

Canaan sold 0.9 million Th/s in mining power in the past quarter, which is 18.4% more than that of the same period last year. 

© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Bitcoin miner manufacturer Canaan shrinks its net loss by 95% in Q1 2020 written by Celia Wan @ May 22, 2020 Celia Wan

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