Bitcoin

This bitcoin mining company’s stocks are in free fall after reporting losses in the third quarter

Shares in one of China’s “Big Three” cryptocurrency mining companies, is in freefall this Monday after another quarterly loss was reported. Highlight the operational challenges posed by COVID-19.

Canaan Creative, that manufactures crypto mining devices, published its financial report for the third quarter on Monday. The company has registered a net loss of $ 12.7 million, or 54 cents per share, with sales of $ 24 million. Although quarterly sales increased 5%, the company’s net losses more than quadrupled.

Quanfu Hong, Canaan’s CFO threw cold water on net loss disclosure by stating this Demand for mining equipment increased during the quarter, a trend that is expected to continue through the end of 2020.

“We have received a large number of pre-order orders that are expected to ship from the fourth quarter of 2020.”

This bitcoin mining company’s stocks are in free fall after reporting losses in the third quarter
This bitcoin mining company’s stocks are in free fall after reporting losses in the third quarter

Canaan’s stock price has remained consistently below average since it debuted on November 19. it fell more than 10% on Monday. The last time stocks were seen in the infirmary was with losses of around 9.5%.

Canaan Stock from Yahoo Finace

Canaan collapsed in February alongside the broader financial markets. After a brief rally, stocks fell again in the spring. They would eventually stabilize below $ 3.00 before seeing a sharp spike in early November, possibly due to a correlation with Bitcoin (BTC).

Together with Bitmain, Ebang and Microbt, Kanaan dominates the global SHA-256 miners market. Due to the extensive consolidation of the industry, it is possible that only “2 or 3 investors will survive in the long term”, after a detection of the crypto derivatives exchange Bitmex.

China’s mining industry may have suffered the most from delivery problems related to COVID-19, according to cryptanalysis firm Tokeninsight. Aside from the immediate effects of the pandemic, the sector appears to be in growth mode, particularly in manufacturing, where “new players are poised to enter the field”.

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