Chinese mining equipment manufacturer Canaan Creative today presented its financial statements for the third quarter. The company's net loss in this segment was $12.7 million, despite the simultaneous rise in the price of bitcoin by 30%.
The company reported revenue of $24 million, representing a 75.7% decrease from $100 million in the same period last year. Net profit then was $14 million, and net loss in the second quarter of 2020 was $2.3 million.
From July to September, the company sold equipment with a total hashrate of 2.9 million TH/s. Last year, the value was 3.7 million TH/s.
The company was forced to lower prices in order to remain competitive against the backdrop of dominant players such as Bitmain and MicroBT. As follows from the above information, in the last quarter Canaan sold TH/s for $8.27, which corresponds to a decrease of 70% compared to $27.5 last year.
As of September 30, the company had $26.1 million in cash and cash equivalents, after investing $30 million in short-term financial instruments that it said it could withdraw at any time.
Canaan shares sank 10% from $5.75 to $5.18 after today's announcement before the opening of the trading session.