According to the financial report of the Chinese miner manufacturer Canaan Creative for the second quarter 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, a decrease of 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 a 160% increase in revenue, from $9.6 million to $25.2 million. General and administrative expenses accounted for $4.19 million, or 48% of the company’s total operating expenses.
On Monday, Canaan shares rose 15% to $2.29, after which they were capitalized at $314 million. However, overall, Canaan’s share price declined by 23% in August. In mid-June, a month after the may halving of the reward for bitcoin miners, the Canaan stock price reached its historic low, falling 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 this decrease is due to short-term investments. Since Canaan’s shares were listed on the Nasdaq stock exchange in November 2019, their value has fallen by about 85%.
Recall that for 2019, Canaan Creative’s net loss was $148.6 million on revenue of $204.3 million. In the spring, a class – action lawsuit was filed against the mining company-investors accused Canaan Creative of hiding information about its financial situation and providing false data.