Cryptocurrency

Bitcoin Miner Manufacturer Canaan Creative Cuts Q1 Loss to $5.4 Million


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Summary

  • Canaan Creative reports net loss of $5.6 million for Q1 2020.
  • Losses are down from $9.5 million in Q1 2019.

China-based Bitcoin ASIC manufacture Canaan Creative, has reported a net loss of $5.6 million for Q1 2020.

Despite the substantial loss in Q1 2020, Canaan Creative, is doing far better than it did last year when the company reported a $9.5 million loss for Q1 2019.

The performance this year is a result of Q1 2020 revenues increasing by 44.6% compared to Q1 2019. As reported earlier by The Crypto Associate, Canaan Creative devices currently account for about 16% of all SHA-256 mining devices, while Bitmain only accounts for 27%.

Furthermore, Canaan Creative completed its IPO in November last year, raising $90 million. However, the company has been performing less than stellar since its IPO. Shares of the company are now trading below $4, over a 50% decrease from the $9 IPO share price.

Ebang Filles for $100 Million IPO

Despite witnessing Canaan Creative’s IPO, Ebang, another Bitcoin ASIC manufacture, recently filed for a $100 million IPO, as reported by The Crypto Associate.

Both miner manufactures have seen a direct impact due to the decline in Bitcoin mining hardware purchases. Ebang saw a net loss of over 42 million in 2019, down a further 36 million from 2018. Similarly, Canaan Creative reported a $114.7 million loss in 2019, down from a net income of 17.1 million from 2018. Despite the huge losses in the mining industry, the outlook for the Bitcoin mining landscape still looks positive.

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