Canaan Artistic, the Chinese language maker of bitcoin mining , reported a internet lack of $2.four million in the course of the second quarter of 2020, down from $5.6 million in the earlier quarter. It’s the second consecutive quarter of narrowing losses for the agency, hit onerous by falling demand amid the Covid-19-induced world recession.
For the three months to June 30, income soared 160% to $25.2 million from $9.6 million the quarter earlier than, pushed by a close to 200% enhance in whole computing energy bought.
In accordance with Canaan’s earnings launch of August 31, the Beijing-based firm bought 2.6 million terahash per second (TH/s) of Bitcoin hashpower, up from zero.9 million TH/s in the course of the first quarter. Yr-over-year, whole computing energy bought declined 18% from three.2 million TH/s.
Shares of Canaan fell zero.72% to $2.08 on the Nasdaq Inventory Alternate, on the time of writing. The inventory has tumbled greater than 80% since itemizing on the alternate final November. Then, it traded at a excessive of $13.
Canaan chief govt officer Nangeng Zhang commented: “Through the second quarter of 2020, the Covid-19 pandemic continued to impression the lives of individuals all over the world and the Bitcoin halving occasion additionally precipitated vital volatility in bitcoin costs.” Zhang added:
We’re assured that our…pipeline of next-generation merchandise will proceed to maintain our progress momentum in the long run.
Within the evaluation quarter, analysis and improvement bills declined to $three.7 million from $5.9 million beforehand, mentioned the agency, which manufactures the Avalon vary of ASIC bitcoin mining chips.
Canaan reported money and money equivalents of $22.2 million for the June quarter, down from $37.three million in Q1. The corporate mentioned the decline is a results of larger short-term investments, which amounted to a complete of $49.2 million by the top of June.
For the second quarter operating, Canaan didn’t challenge steerage for the subsequent three buying and selling months, citing “continued uncertainty from the quickly altering world setting associated to the Covid-19 pandemic and corresponding financial downturn.”
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