Bitcoin Miner Manufacturer Canaan Sees Its Q1 Revenue Drop 80 Percent from 2019, Insider Says

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Tue, 05/19/2020 - 16:11
Alex Dovbnya

A Canaan insider says that the Q1 revenue of one of the leading Bitcoin manufacturers plunged 80 percent compared to the previous year

Cover image via stock.adobe.com
Contents

Bitcoin miner manufacturer Canaan is expected to report an 80 percent revenue loss in Q1 2020 compared to the previous year in its upcoming earnings report.

This is according to the firm’s insider who was recently cited by BTCKING555, an anonymous Twitter account that leaks information about major players in the cryptocurrency mining industry.

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A bumpy post-IPO ride  

The ASIC-maker made its $90 mln IPO debut on the New York-based Nasdaq in October 2019 to much fanfare. In fact, it was the first blockchain company that got listed on America’s second-largest stock exchange.  

The Canaan stock is currently down more than 51 percent since its IPO listing, but the woes of the once high-flying mining giant don’t stop there. 

Back in March, it was hit with a class-action lawsuit over fabricated financial statements. 

Recently, Nasdaq strengthened listing requirements, which will make it harder for smaller Chinese companies with low accounting transparency to pursue public offerings in the U.S.

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Canaan’s downfall

While Canaan is yet to officially announce its Q1 earnings, its previous report (the first one since the IPO) already exposed the dire state of the Bitcoin machine manufacturer.

In Q4 2019, Canaan recorded a net loss of $114.7 mln that was attributed to Bitcoin’s bearish price action in December.

As reported by U.Today, the hardware manufacturer initially had an ambitious $400 mln IPO target during the heyday of cryptocurrency mining that seems completely divorced from reality now.  

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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