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Canaan reports $33M net loss for 2020 despite bullish Bitcoin price action

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Bitcoin’s bullish 2020 closeout was not sufficient to forestall Canaan from incurring a net loss in 2020.

In keeping with the corporate’s unaudited monetary report for This autumn 2020, the Bitcoin (BTC) miner maker’s net loss for 2020 was about $33 million. Nevertheless, Canaan’s 2020 net loss is considerably decrease than the $148 million recorded in 2019.

Certainly, the discount in net loss for Canaan was a typical theme throughout the corporate’s quarterly efficiency in 2020. As beforehand reported by Cointelegraph, vital progress in gross margin on the sale of mining rigs helped the corporate reduce its year-on-year net loss by over 90% in Q2 2020.

As a part of the report issued on Monday, Canaan revealed that its 2020 net income amounted to about $68.6 million — a 66% decline from the income figures within the 2019 financials.

The marked income decline additionally meant Canaan’s year-on-year gross revenue took a steep tumble falling from $79 million in 2019 to beneath $6 million in 2020.

Nevertheless, despite the drop in net income, Canaan stated the development will reverse in 2021, with the corporate forecasting a $61-million net income goal for Q1 2021.

Like different Chinese language miners, Canaan’s crypto mining stock is on backorder amid the continuing world semiconductor scarcity.

In keeping with Canaan CEO Nancheng Zhang, the quantity of pre-orders for the corporate’s Bitcoin mining {hardware} will drive income progress, stating:

“Although the outbreak of COVID-19 caused supply chain disruptions and thus negatively impacted our revenues in the fourth quarter of 2020, our market leadership has enabled us to attain $174 million contracted orders with $66 million of cash advance from customers as of December 31, 2020, thus laying a solid foundation for substantial revenue growth for 2021.”

On the time of writing, the inventory price of the Nasdaq-listed Canaan is about 50% down from its 2021 excessive attained a month in the past. Despite the drop, Canaan remains to be up 179% year-to-date.

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