Demand for miners has fallen. In the first quarter, Canaan's loss exceeded $5.6 million

Demand for miners has fallen. In the first quarter, Canaan's loss exceeded $5.6 million

By Kluma | InterestingCrypto | 25 May 2020

A Chinese manufacturer of digital money mining equipment has submitted financial statements. The cost of the devices was forced to be reduced by half, so the company's expenses increased significantly.

In the first quarter of 2020, demand for miners decreased, which caused the Chinese manufacturer of equipment for extracting digital money, Canaan, to suffer losses of $5.6 million. The company presented financial statements, according to which revenue from January to April was $9.4 million, 44.6% higher than last year. At the same time, expenses exceeded $15 million. This is due to the fact that in order to increase sales, Canaan has reduced the price of devices by almost 2 times.

"The market situation from December last year to January this year was not very good. The price for the equipment in terms of TH/s was actually reduced, " said the head of the company, Zhang Nangeng.

In the first quarter, Canaan sold 0.9 million TH/s worth of miners, which is less than 1% of the current bitcoin hashrate. The company's reserves in traditional currencies and equivalents decreased from $71 million to $37.3 million. The head of the mining giant explained this by increasing the volume of short-term investments.

The company previously reported that in 2019 its net loss was $178 million. Canaan shares are traded on the Nasdaq stock exchange. After the publication of the financial report, they fell by 5% to $3.8. at the IPO, the price of securities was $9.

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