Miner Maker Canaan Q2 Report Reveals 160% Revenue Increase But The Still At a Net Loss

Even in spite of undergoing an incredible quarter in terms of growth, Canaan still finds itself embroiled in net losses. Even so, its mining solutions have demonstrated exceptional growth when comparing it to the companies performance from the same time last year.

Canaan, one of the leading manufacturers of bitcoin mining machines, has released an unaudited financial report for the second quarter of 2020. The information that was released on August 31st suggested a profitable quarter and even a gross profit for a year over year. However, the firm is still at a net loss, despite two profitable quarters. The net loss stems from those incurred over 2019.

Canaan also conducted its IPO last year in November with a target fund of $400 million, out of which the bitcoin mining rig manufacturer raised 25% of the target amount. The outbreak of the pandemic had quite an adverse effect on the company’s share price, which is currently valued at $2.19, down by almost 75% from its public sale price of $9.

The unaudited report also revealed that the company sold about 2.6 million THash/s worth of computing power for the ASIC mining machine in the second quarter. The amount of hash-power sold by the company has nearly tripled from the first quarter’s figure of 0.90 million THash/s. As an added note, the sales figures for this quarter have dropped by 18% from the last year.

The revenue generated by the company in the second quarter stood at RMB 178.1 million ($25.2 million), which is also up by 160% compared to the first quarter, but declined by 25% when compared to the last year.

The gross profit generated by the company in this quarter stood at RMB 43.3 million, equivalent to $6.1 million, seeing an increase of almost 300% year on year, and over 1,700% when compared to Q1.

The gross margin has seen a significant bump in all parameters, where it was up by 25% when compared to last quarter against just 4.2% in 2019.

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Hank Klinger
Hank Klinger
Hank Klinger has been working online for seven years now. He has written for several national companies. Hank has been a part of our team for over three years, reviewing ICOs, new cryptocurrencies and helping us keep up to date with industry news. His primary knowledge is in marketing, sales, and advertising, and he uses that knowledge to research and pick out reliable sources of information to use as a basis for his writing.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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