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ASIC processors, Avalon, beijing, Bitcoin mining, Bitcoin third halving, canaan creative, Canaan net loss, China, COVID-19, Nangeng Zhang, Nasdaq Stock Exchange
Canaan Cuts Losses for Second Successive Quarter, Down To $2.4M in Q2; Demand Remains Weak
From the review quarter, research and development expenses declined to $3.7 million from $5.9 million previously, said the company, which generates the Avalon range of ASIC bitcoin mining processors.
The company said the decrease is a consequence of greater short-term investments, which amounted to a total of $49.2 million from the end of June.
For the 3 months to June 30, earnings jumped 160 percent to $25.2 million from $9.6 million the quarter before, driven by a close 200% increase in total computing power sold.
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 to the company, hit hard by falling demand amid the Covid-19-induced global recession.
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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.
Released at Thu, 03 Sep 2020 05:00:36 +0000
Shares of Canaan fell 0.72percent to $2.08 on the Nasdaq Stock Exchange, at the time of writing. The stock has tumbled over 80% since listing on the market last November. Afterward, 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 individuals around the world and the Bitcoin halving event also caused considerable volatility in bitcoin rates.” Zhang added:
We are convinced that our…pipeline of next-generation products will continue to sustain our growth momentum in the future.
For the second quarter running, Canaan did not issue guidance for the next three trading weeks, citing”continued uncertainty from the rapidly changing global environment related to the Covid-19 pandemic and corresponding economic downturn.”