Canaan Creative, the Chinese maker of bitcoin mining hardware, reported a net loss of $2.4 million during the second quarter of 2020, down from $5.6 million in the previous quarter. It is the second consecutive quarter of narrowing losses for the firm, hit hard by falling demand amid the Covid-19-induced global recession.
For the three months to June 30, revenue soared 160% to $25.2 million from $9.6 million the quarter before, driven by a near 200% increase in total computing power sold.
According to Canaan’s earnings release of August 31, the Beijing-based company sold 2.6 million terahash per second (TH/s) of Bitcoin hashpower, up from 0.9 million TH/s during the first quarter. Year-over-year, total computing power sold declined 18% from 3.2 million TH/s.
Shares of Canaan fell 0.72% to $2.08 on the Nasdaq Stock Exchange, at the time of writing. The stock has tumbled more than 80% since listing on the exchange last November. Then, it traded at a high of $13.
Canaan chief executive officer Nangeng Zhang commented: “During the second quarter of 2020, the Covid-19 pandemic continued to impact the lives of people around the world and the Bitcoin halving event also caused significant volatility in bitcoin prices.” Zhang added:
We are confident that our…pipeline of next-generation products will continue to sustain our growth momentum in the future.
In the review quarter, research and development expenses declined to $3.7 million from $5.9 million previously, said the firm, which manufactures the Avalon range of ASIC bitcoin mining chips.
Canaan reported cash and cash equivalents of $22.2 million for the June quarter, down from $37.3 million in Q1. The company said the decline is a result of higher short-term investments, which amounted to a total of $49.2 million by the end of June.
For the second quarter running, Canaan did not issue guidance for the next three trading months, citing…