Mining equipment manufacturer Canaan announced that the company's net loss in the first quarter of 2020 year amounted to $ 5.6 million.
In a quarterly report, a Chinese companynotes a significant reduction in total revenue: from $ 66.5 million in the previous quarter to $ 9.6 million in this quarter. Although revenue increased by 44.6% compared to the first quarter of 2019, Canaan is forced to cut the price of miners by half in order to increase the number of sales. Currently, more profitable ASIC miners produce Bitmain and MicroBT. Canaan Avanon miners are significantly inferior in efficiency.
During the reporting quarter, the company sold 0.9 millionterahash per second (TH / s) of the bitcoin hash, which is less than 1 percent of the total processing power currently generated by mining operations.
Financial data also showed that cashThe company's reserves decreased to $ 37.3 million from $ 71 million at the end of December. Canaan noted that the decline was mainly due to the large number of short-term investments made by the company.
Canaan shares are listed on the US Stock Exchange, andthe announced losses are reflected in the market performance of the company. After the financial report was published in the press, the company's shares fell 5 percent and traded at $ 3.80 compared with the IPO offering price of $ 9.