Bitcoin (BTC) mining hardware company, Canaan Creative, released an unaudited financial report yesterday indicating that it suffered from a net loss of over $12 million this Q3 of 2020. That is quadruple the amount of its total net revenue loss last quarter, which is just about $2 million. This development fully negates the company’s 5% quarterly growth of revenue – implying that Canaan is losing so much more money than it actually makes.
The chief financial officer of the company, Quanfu Hong, however, remains calm through it all. He states that Canaan will soon make up its losses as the demand for mining hardware is again on the rise and will most likely do so up to next year. Hong adds that they have already received several pre-sale orders just waiting to be delivered in this year’s now-final stretch.
There is some truth to Hong’s words, though. This Q4 of 2020, the company’s shares jumped by a staggering 183% – reaching a peak of $7.25 per share this past Wednesday. That being said, the trend may have slowed down as it dropped by about 13% just recently, now only listing at about $5.23 per share. Whether Canaan reemerges from this – just as how its CFO foresees – remains to be seen; however, as it currently stands, the company is glaringly not in a good place.