Canaan, one of the top crypto mining machine makers released an unaudited financial report for the third quarter of 2020 in which the company incurred a net loss of $12.7 million. The report revealed that the firm made $24 million in net revenues in Q3, seeing a decline of almost 76% from the same quarter last year when it reported a revenue of $100 million.
The crypto mining maker has registered a sharp dip in their revenue in the third quarter, however, despite the loss, the firm is committed to expanding their reach in the crypto mining business and has invested $45 million towards the same. Wu Blockchain, a popular crypto handle known for bringing exclusive news from the Chinese crypto and blockchain ecosystem revealed that Canaan Inc received an additional payment of $45 million for mining machines.
Canaan, first listed mining machine company, announced its Q3 financial report. Although the data has declined, it has revealed an advance payment of $45million and is ready to move forward to crypto. In the past two months, Canaan's stock has risen by 200%, FMR has re-held pic.twitter.com/v9XEBndin4
— Wu Blockchain (@WuBlockchain) November 30, 2020
The official tweet further revealed that the total amount of pre-sale orders for mining machines in the fourth quarter of this year and the first quarter of next year was over 45 million.
The net revenue of Canaan in quarter three came down to $24 million, suggesting the mining machine manufacturer has taken significant price cuts to maintain its position in the market. The firm sold 2.9 million terahashes per second (TH/s) of computing power from July to September averaging $8.27 per tera hash which is a significant 70% drop from the third quarter of 2019 when they sold at an average price of $27.5 per TH/s.
The quarterly revenue of Canaan might have seen a significant dip on a YOY basis, however, the share price of the crypto mining manufacturer has soared by almost 200% over the past two months generating great returns for the investors. The rise in share prices is being attributed to the ongoing bullish rally of bitcoin, where the top cryptocurrency has breached the $19,000 mark again after a sharp 14% correction on Friday.