- Canaan manufactures Bitcoin mining hardware.
- A loss was reported for the third quarter today.
- However, it is said that the demand for its products has increased recently.
Around this time last year, bitcoin mining hardware maker Canaan basked in the afterglow of a successful $ 90 million IPO in the United States. It was the first cryptocurrency company to be listed on the Nasdaq stock exchange.
This year has been a little tougher for the integrated circuit maker despite Bitcoin price hikes. Its share price fell to over $ 5.00 after its third quarter earnings report, a decrease of over 13% from yesterday’s closing price.
By March, things looked mostly good for Canaan. At that time, the Chinese company based in the Cayman Islands was affected by a class action lawsuit in the United States. Shareholders accused him of violating the security law. It is also when the COVID-19 pandemic took over the globe.
Between May 27 and November 13, Canaan’s stock price did not approach $ 3.00.
After a strong November and before today quarterly results reportHopes were high that the integrated circuit maker would have better days. That subsided somewhat as the company posted a 76% year-over-year revenue decline and a loss for the quarter.
Canaan’s CFO Quanfu Hong found a silver lining. After pointing out that the COVID-19 pandemic had impacted production capacity, he said, “However, the demand for mining equipment in the market continued to recover in the third quarter and we received a large number of pre-order orders that the delivery is for the fourth quarter of 2020 planned. “
During the third quarter of 2020, which ran from July 1 to September 30, Bitcoin rose from a starting price of $ 9,225 to $ 10,791, an increase of 17%. So far, it’s been a tear in the fourth quarter and hit an all-time high today, November 30th.
Canaan hopes what is good for Bitcoin is good for its business.