Canaan Creative reports $2.38 million loss and 160% revenue growth for Q2 2020

According to the financial report of the Chinese miner manufacturer Canaan Creative for the Q2 of 2020, the company’s losses decreased to $2.38 million, and revenue increased to $25,2 million.

According to the report, the company’s losses in the second quarter of 2020 amounted to $2.38 million, having decreased by almost half compared to the first quarter. Recall that in the first quarter of 2020, the company’s losses amounted to $5.64 million. Canaan also notes an increase in revenue by 160% – from $9.6 million to $25.2 million. General and administrative expenses accounted for $ 4.19 million, or 48% of all production costs of the company.

On Monday, Canaan shares rose 15%, reaching $2.29, after which their capitalization amounted to $314 million. However, in general, in August, the value of Canaan shares fell by 23%. In mid-June, a month after the Bitcoin miner reward halved in May, Canaan’s stock price hit its all-time low, dropping to $1.76.

As of June 30, 2020, the value of Canaan’s assets in fiat currency and its equivalents decreased by 40% to $22.2 million. At the end of the previous quarter, this figure reached $37.3 million. The company explained that such a decrease was due to short-term investments. Since its listing on the Nasdaq in November 2019, Canaan’s stock has dropped about 85%.

Recall that in 2019, Canaan Creative’s net loss amounted to $148.6 million with revenue of $204.3 million.In the spring, a class action lawsuit was filed against the mining company – investors accused Canaan Creative of concealing information about its financial situation and providing false data.

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