crypto News Canaan quarterly profit collapsed 90%

Canaan quarterly profit collapsed 90%

Canaan quarterly profit collapsed 90%

For the third quarter, the manufacturer of Bitcoin Mainers Kanaan received a net profit of 61.1 million yuan ($ 8.6 million). The indicator collapsed 90% in relation to the previous period.

The company also recorded a drop in gross profit by 74.8% – from $ 130.9 million to $ 32.9 million.

Canaan implemented miners with a total hash of 3.5 eh/s during the reporting period. Sales Meta to shut down per quarter to the quarter to the quarter decreased by 37.1%, the revenue amounted to 978.2 million yuan ($ 137.5 million).

“The Bitcoin mining market worsened during the third quarter, since the price of cryptocurrency fluctuated and recently fell to about $ 16,000. Negative dynamics significantly prevented the cash flow and income of miners, ”said the chairman and CEO of Nangen Zhao.

According to him, this forced Canaan to adjust the prices of already concluded contracts. In the physical measurement of equipment sales per quarter corresponded to forecasts, he added.

Against the background of the bear market, the company continued to increase the scale of its own mining business, expanding operations in the United States, Zhao noted. Cryptocurrency mining brought an income of 62 million yuan per quarter ($ 8.77 million).

“Looking ahead, we are faced with a very tough period in the industry, since the price of bitcoin falls to a two -year minimum. Priority is to maintain our money, minimize expenses and withstand this decline in the market, ”the head of Canaan emphasized.

The shares of the company on the premarket have risen slightly and are traded at $ 2.71. Since the beginning of the year, quotes have decreased by about 47% – from $ 5.15.

In November 2019, during an IPO on NASDAQ, the company placed 10 million depository receipts at a price of $ 9.

In May, SEC brought Canaan into a preliminary list of Chinese companies to be divided on American exchanges.

Recall that at the end of October, the manufacturer presented a new generation of Bitcoin Mainers of the 13th series Avalon Made.

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