Canaan Reports $12M Q3 Loss, Says There’s ‘Rebounding Demand’ for Mining Machines
Canaan Reports $12M Q3 Loss, Says There’s ‘Rebounding Demand’ for Mining Machines
Mining hardware manufacturer Canaan Creative reported a Q3 net loss of $12.7 million, or 54 cents per share, more than quadruple the size of Q2’s $2.38 million loss, or 10 cents per share.
- Total net revenue in Q3 for the Hangzhou, China-based company fell 5% to $24 million since the previous quarter, per an an unaudited financial report released Monday.
- The price of bitcoin gained 18% in Q3.
- Cash held by Canaan grew nearly 18% in Q3 to over $26 million, up from barely $22 million in the previous quarter.
- Offering some optimism while reporting the significantly wider quarterly loss, CFO Quanfu Hong said “demand for mining machines in the market continued to rebound in Q3 2020. We have received a large number of pre-sale orders scheduled for delivery starting in the fourth quarter,” he said.
- Canaan shares have surged 183% to date in Q4, reaching $7.25 on Wednesday. At the end of Q4, shared had dropped nearly 85% from its initial listing, trading at $1.83.
- At last check, Canaan shares traded at $5.23, down 13%
- The company has traded on the Nasdaq for only 12 months after the firm abandoned plans for an initial public offering on the Hong Kong Stock Exchange.
