Bitcoin mining rig producer Canaan Inventive reported a internet lack of $5.6 million for the primary quarter of 2020, down from $9.5 million a yr earlier.

The Chinese language firm minimize costs of its ASIC-based machines by over 50% in an effort to enhance gross sales, however that wasn’t sufficient to stop the heavy loss. Demand slumped because the coronavirus pandemic, which disrupted the motion of products worldwide, took its toll.

Shares of Canaan fell as a lot as 3.51% to $3.85 on the Nasdaq Inventory Alternate, at Press time. The inventory has tanked from a 52-week excessive of $13

For the interval January to March, income climbed 45% to $9.Four million from $6.6 million the earlier yr, pushed by a 19% enhance in whole computing energy bought.

In keeping with Canaan’s earnings launch revealed on Friday, the agency bought 0.9 million terahash per second (TH/s) of Bitcoin hashpower, up from 0.7 million TH/s in the identical interval in 2019. This yr’s terahash gross sales account for about 1% of the BTC community’s present whole.

Canaan chief government officer Zhang Nangeng instructed analysts in an earnings name that: “The general market scenario since December final yr till January had not been too good. So the unit worth per TH/s was certainly decrease.” He added:

And the logistics in mainland China had mainly stopped across the Chinese language new yr because of the Covid-19 pandemic. So despite the fact that bitcoin’s worth was at a better level in February and early March, the pandemic largely affected our gross sales.

Within the evaluate quarter, analysis and growth bills rose to $5.9 million from $4.38 million beforehand, mentioned the agency. Canaan reported money and money equivalents of $37.Three million for the March quarter, down from $72.Three million on the finish of December final yr.

“The lower was primarily as a result of increased short-term investments as the corporate invested $24.5 million in short-term investments as of March 31, 2020,” it mentioned.

Canaan, which has a market worth of $603 million, didn’t concern second-quarter forecasts citing the uncertainty created by the coronavirus and the latest third halving of Bitcoin.

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