Chinese Bitcoin mining rig manufacturer Canaan has announced a net loss of $12.7 million as part of its Q3 financials.
Since an underwhelming IPO back in Nov. 2019, the miner maker has endured a turbulent time with its stock price taking a beating earlier in the year.
Quarterly Losses Continue for Canaan
In its unaudited financial report for Q3 2020 published on Nov. 30, Canaan revealed a net loss of RMB86.4 million (~$12.7 million). The figure represents a five-fold increase in the net loss recorded in the previous quarter.
Canaan also saw its Q3 net revenue dip by over 8% from the earnings reported in its Q2 financials. Indeed, the company’s performance in Q3 2020 pales in comparison with the same period last year, resulting in a year-on-year slide of about 75% in revenue.
The positive bitcoin (BTC) price performance since October did provide some relief for the company in addition to an uptick in sales. According to the report, Canaan recorded $45 million in advance payments for Bitcoin mining hardware sales and preorders.
Back in September, Canaan’s market capitalization stood at $300 million. As of press time, data from Nasdaq puts the company’s value at over $900 million.
Canaan’s stock price is up over 170% so far in Q4 2020. Since September, the company’s share price has risen two-fold but is still some way off its Nov. 2019 all-time high (ATH).
With the float price losing support, Canaan stocks slumped even further in May 2020 after the expiration of the 180-day IPO lockup period.
Bitcoin Mining Inventory Sales Picking up
According to Chinese crypto news source @WuBlockchain, Canaan is beginning to compete favorably in the Bitcoin mining rig market, especially with the launch of the A1246 in October.
Back in early June, the company rolled-out two inferior miner models that provided far less mining efficiency than the market-leading products from the stables of major competitors Bitmain and MicroBT.
As previously reported by BeInCrypto, Bitcoin mining efficiency is driving the ASIC ‘arms race.’ With the halving reducing block subsidies by 50%, miners are opting for hardware that offers lower watts per terahash (W/T) ratios.
A reduction in the W/T ratio for rigs translates to reduced electricity consumption for enhanced hashing capabilities.