Canaan reveals narrowed web loss in Q1

By | May 22, 2020

Canaan, a Nasdaq-listed bitcoin mining machine producer, noticed a slight uptick in its enterprise within the first quarter of 2020 after a disappointing efficiency in 2019. 

In a quarterly filing with the Securities and Alternate Fee (SEC), the Hangzhou, China-based firm reported a complete web lack of $5.6 million in Q1. The quantity is 41% decrease in comparison with Q1 2019.  

Canaan’s complete revenues in Q1 contracted considerably, sliding from $66.5 million within the earlier quarter to $9.6 million this quarter. Though in comparison with Q1 2019 the income elevated by 44.6%. 

The corporate appears to have compensated for the income decline with a greater revenue margin. In This autumn final yr, Canaan posted a gross lack of $96.7 million, calculating to a -145% revenue margin. Nevertheless, the corporate reversed the downward development this quarter with a gross revenue of $336,000 on a 3% margin.

The higher margin could also be because of Canaan promoting its inventories within the first three months of 2020, based on an business observer. 

In accordance with the submitting, the agency’s year-over-year income progress was “pushed by will increase in complete computing energy bought and the common promoting worth per Thash within the interval.” 

Canaan bought 0.9 million Th/s in mining energy previously quarter, which is 18.4% greater than that of the identical interval final yr. 

© 2020 The Block Crypto, Inc. All Rights Reserved. This text is offered for informational functions solely. It isn’t provided or meant for use as authorized, tax, funding, monetary, or different recommendation.

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