Mining company Canaan Creative reported on reduction of losses in the second quarter
Chinese mining equipment company Canaan Creative on Monday presented financial statements for the second quarter of 2020 before undergoing audit.
Canaan saw revenue growth compared to the previous quarter and the same period last year, but still remains unprofitable, albeit to a lesser extent. Net loss in the second quarter was $ 2.38 million, or 10 cents per share, while in the first quarter it was $ 5.64 million, or 24 cents per share..
At the same time, revenues increased by 160% from $ 9.6 million to $ 25.2 million. The largest items of expenses were “general and administrative” – they accounted for $ 4.19 million, or 48% of all operating costs of the company.
In the period under consideration, the company sold mining equipment with a cumulative hash rate of 2.6 million TH / s. In the first quarter, the value was 0.9 million TH / s, but last year it was 18.2% higher.
Shares of Canaan on the background of the publication of reports rose by 15% to $ 2.29, as a result of which their capitalization amounted to $ 314 million. In general, in August, they fell by 23%. In mid-June, shortly after the third bitcoin halving, a historic low was recorded for Canaan’s stock price of $ 1.76. Falling 85% Since Nasdaq Listing in November 2019.
As of June 30, the company had reserves in fiat currency and its equivalents of $ 22.2 million. The decrease compared to the end of the first quarter was equal to 40%. The company explained the current dynamics by short-term investments.
“During the second quarter of 2020, the COVID-19 pandemic continued to impact people’s lives. In addition, Bitcoin halving caused significant volatility in the cryptocurrency market, ”said Nangeng Zhang, Chairman and CEO of Canaan Creative, commenting on the presented results..
The company refused to announce its goals for the next quarter, citing the uncertainty of the economic situation in the world..
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