Canaan Loss 148 Million Dollars in 2019

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Chinese mining giant Canaan Creative has announced that it has made a net loss of $ 148.6 million in 2019, reflecting a declining profitability over the $ 204.3 million revenue in 2019. The firm released its first earnings report since its IPO in the US last November. Canaan said it sold a total of 10.5 exhash (EH / s) computing power per second, accounting for about 20 percent of the computing power growth of the Bitcoin network last year.

There Was a Significant Decline
Since the IPO of $ 90 million, Canaan’s share price has now declined to about $ 3.5 per share, which is almost 61 percent below the IPO price. The firm posted a net loss of $ 114.7 million in the first quarter of 2019, which grew further with a net loss of $ 31.2 million in the first nine months of 2019. Canaan’s CEO and founder, Nangeng Zhang, said the firm saw a “significant drop” amid volatility in Bitcoin price in December, despite sales growth in October and November.

The remarkable point in the earnings report is: Cost. Canaan’s sales have increased over the past year, but the cost has also increased and profitability has decreased. The revenue cost for Canaan in 2019 was $ 278 million, which is $ 78 million more than the total revenue for the year.

Canaan’s revenue costs generally include raw material, production and logistics costs, as well as written values ​​of prepayments and stocks to produce mining equipment.


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