Hangzhou-based bitcoin miner maker Canaan has reported a net loss of $12.7 million in Q3 despite bitcoin's price jump during the same period.
The company released an unaudited financial report on November 30. Canaan made $24 million in net revenues in Q3 this year, which represents a 75.7% decline compared to $100 million in the same period last year.
As a result of the sharp revenue drop, the firm has incurred a net loss of $12.7 million, compared to a net income of $14 million year-on-year and a narrowed net loss of $2.3 million in Q2 2020.
The increased net loss quarter-over-quarter came despite that bitcoin's price had jumped by as much as 30% during Q3.
In addition, the firm said it sold 2.9 million terahashes per second (TH/s) of computing power from July to September – a 20% drop year-over-year (3.7 million TH/s).
That indicates Canaan has been taking significant price cuts to its bitcoin mining equipment in order to salvage its hashing power market share eroded by dominant players like Bitmain and MicroBT.
With a $24 million Q3 revenue on 2.9 million TH/s of computing power sold, Canaan's average price was about $8.27 per TH/s, which represents a 70% drop compared to an average price of $27.5 per TH/s in the same period 2019.
Canaan said as of September 30, it had cash and cash equivalents of $26.1 million since it had invested $30 million in short-term financial investments that it said it can withdraw at any time.