Canaan saw 75% drop in net revenue for the third quarter of this year as the Bitcoin price surges to new all-time highs. The BTC mining equipment manufacturer has recorded losses but there are some signs of recovery as we can see in the latest Bitcoin news.
Canaan saw 75% drop in net revenue but it shows positive signs of recovery as the share price and total market cap spiked. After a disappointing initial public offering in 2019 and the declining inventory sales, the company saw a balanced power shift to major competitors Bitmain and MicroBTC. BTC miner maker Canaan reported the year-on-year decline in net revenue in its Q3 2020 financials and in the report, the company revealed that its net revenue for the period was $24 million which amounts to an 8.5% reduction from the earnings that were recorded in the second quarter.
Canaan, first listed mining machine company, announced its Q3 financial report. Although the data has declined, it has revealed an advance payment of $45million and is ready to move forward to crypto. In the past two months, Canaan's stock has risen by 200%, FMR has re-held pic.twitter.com/v9XEBndin4
— Wu Blockchain（Chinese Crypto Reporter） (@WuBlockchain) November 30, 2020
After the drop in the quarter on quarter NET revenue, it is not surprising to see Canaan post another losses in 2020. According to the Q3 financials, the BTC mining equipment manufacturer lost $12.7 million compared to the previous $2.5 million in the second quarter of this year and the $14.3 million in the third quarter a year ago. Commenting on the report, Nangang Zhang, CEO and Chairman of Canaan said:
“During the third quarter of 2020, we remained undeterred by the pandemic to strengthen our research and development capabilities, expand our AI business, and execute new business initiatives. By leveraging our enhanced R&D capabilities in the third quarter, we launched our A1246 product series, which continues to lead the industry with its energy efficiency, computing power, and unit cost.”
Net revenue loss aside, Canaan was recoding positive movements in the latter part of 2020. The company’s market capitalization tripled from $300 million in September to about $900.8 million as of press time. Canaan’s share price was on a tear and increase by more than 200% in the same period. With one-third Q4 remaining, the stocks of the company increased by over 170%. Maintaining the current price action could see the miner manufacturer’s price’ challenge the IPO float price at $9 which it’s the all-time high share price.
Tweeting on Q3 performance, Wu Blockchain identified some increasing inventory sales and the release of the company’s A1246 miners are the main contributing factor to the surge of the company recently. Canaan was among the group of Chinese mining hopefuls that were looking to float IPOs in the last couple of years. Canaaan’s offerings fell short on this market and didn’t even realize a quarter of the $400 million estimate.
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