Canaan Reports $12M Q3 Loss, Says There’s ‘Rebounding Demand’ for Mining Machines

Mining hardware manufacturer Canaan Creative reported a Q3 net loss of $12.7 million, or 54 cents per share, more than quadruple the size of Q2’s $2.38 million loss, or 10 cents per share.

• Total net revenue in Q3 for the Hangzhou, China-based company fell 5% to $24 million since the previous quarter, per an an unaudited financial report released Monday.
• The price of bitcoin gained 18% in Q3.
• Cash held by Canaan grew nearly 18% in Q3 to over $26 million, up from barely $22 million in the previous quarter.
• Offering some optimism while reporting the significantly wider quarterly loss, CFO Quanfu Hong said that "demand for mining machines in the market continued to rebound in Q3 2020. We have received a large number of pre-sale orders scheduled for delivery starting in the fourth quarter," he said.
• Canaan shares have surged 183% to date in Q4, reaching $7.25 on Wednesday. At the end of Q4, shares had dropped nearly 85% from its initial listing, trading at $1.83.
• At last check, Canaan shares traded at $5.23, down 13%
• The company has traded on the Nasdaq for only 12 months after the firm abandoned plans for an initial public offering on the Hong Kong Stock Exchange.