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.