Canaan Shows Multi-Million Dollar Losses
Representatives of one of the largest mining equipment manufacturers Canaan published a financial report for the first quarter of 2020, which turned out to be not optimistic. The company lost $5.6 million in the first three months of this year.
Comparing with the revenue of the same period a year ago, you can see a significant increase of 44.6%, still, it is 6.5 times less than in the fourth quarter of 2019. Last year, the company's net loss amounted to $114.6 million.
BTCKING555 believes it`s the result of reduced demand for outdated mining equipment.
JUST IN @canaanio $CAN numbers REV for Q1 collapsed to < $10 mln and Net Loss of $6 mln. The company does not even provide Q2 guidance as numbers continue collapsing and noone wants their outdated equipment 😱 pic.twitter.com/5godM1BCvr
— BTCKING555 (@btcking555) May 22, 2020
Low sales and extremely high stocks of unwanted equipment A1066 deplete the company's resources. If this goes on, Canaan will need additional capitalizing.