By Tobi Loba
Canaan Creative, a Chinese Bitcoin miner manufacturer has revealed that it made a net loss of $148.6 million for 2019 on revenue of $204.3 million.
According to the update, this is the firm’s first unaudited earning report since it went public in the United States in November 2019.
As per Canaan’s account, computing power totaling 10.5 EH/s was sold, which accounted for relatively 20% of the growth of computing power of the Bitcoin network in 2019
The firm’s share price has been trending downward since its $90 million IPO. Canaan is presently revolving around $3.5 per share, which is over 60% of the price of its public offering.
In Q4 of 2019, the firm had $114.7 million in net loss, widening its $31.2 million net loss in early last year.
According to Coindesk, the CEO and founder of Canaan of Nangeng Zhang said despite the fact that the mining firm recorded sales increase in October and November of 2019, it still saw a notable volume plummet in December and suffered from Bitcoin price volatility.
Another important observation in the earning report released by Canaan is the increasing ratio of the cost of revenues over the sales of Bitcoin miners by the firm throughout last year, which resulted in declining probability.
The total cost revenue for Canaan was $278 million last year, making it $78 million more than all the revenue garnered in 2019.