Canaan Faces $12M Q3 Loss Amid Bitcoin Surge

Canaan, based in Hangzhou and known for producing bitcoin mining hardware, reported a net loss of $12.7 million for Q3, despite an increase in bitcoin's price during this period. The company's Q3 unaudited financial report, released on November 30, showed net revenues of $24 million, a sharp 75.7% decline from the $100 million recorded in the same quarter of the previous year. This substantial revenue loss led to a $12.7 million net loss, contrasting starkly with a $14 million net income from the same period last year and a reduced net loss of $2.3 million in Q2 2020. The increased net loss came despite bitcoin's price rising by 30% during Q3. Canaan sold 2.9 million terahashes per second (TH/s) of computing power from July to September, marking a 20% decrease from the previous year's 3.7 million TH/s. This implies that Canaan significantly reduced the price of its bitcoin mining equipment to maintain its market share against strong competitors like Bitmain and MicroBT. With $24 million in Q3 revenue from selling 2.9 million TH/s, the average price per TH/s was approximately $8.27, a drastic drop from the $27.5 per TH/s average of the previous year. As of September 30, Canaan reported having cash and equivalents of $26.1 million, having invested $30 million in short-term financial investments accessible at any time.