Canaan Reports $5.6M in Q1 Net Loss with Falling BTC Miner Demand

Canaan Creative, the second largest Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term miner manufacturer, has reported a net loss of $5.6 million for the first quarter of 2020 with the falling demand for its devices.

According to the unaudited report published on Friday, the company reported total revenue of $9.4 million for the quarter - 44.6 percent increase in the figures posted for the same quarter a year before.

The dent on the books of the company also involved $9.3 million and $5.9 million in expenses in the cost of goods sold and R&D respectively.

To increase the number of sales of its ASIC-based machines, Canaan also slashed the price of the Bitcoins miners to more than half.

In an earnings call on Friday, Zhang Nangeng, CEO and chairman of Canaan, said: “The overall market situation since December last year until January had not been too good. So the unit price per TH/s was indeed lower.”

In the reported quarter, the Hangzhou-headquartered company had sold 0.9 million terahashes per second (TH/s) of Bitcoin mining Hash Rate Hash Rate A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain Read this Term - less than 1 percent of the total computing power currently generated by the mining operations.

The financials also revealed that the cash and cash equivalent with the company dropped to $37.3 million last quarter from $71 million by the end of December. Canaan pointed out that the drop was primarily due to the higher short-term investment made by the company.

Last month, the Chinese company reported a net loss of $178 million for entire 2019.

Reflection on the market

Canaan’s stocks are listed in the United States stock exchange and the impact of the red numbers is reflected in its market performances. The company’s stocks dropped by more than 5 percent, as of press time, and is trading at around $3.80, compared to the IPO issue price of $9.

The company is also facing a class-action lawsuit by its investors for providing false information about the financial health and operation status of the company in the IPO filings.