Canaan Reports $5.6M Loss in Q1 Despite Bitcoin Miner Price Cut – CoinDesk


That means Canaan had cut down the prices for its mining hardware sold in the first three months by more than 50% to just $10 per TH/s, reflecting an overall slowdown of the buying interest into mining hardware amid Bitcoin’s halving event and the COVID-19 pandemic that has disrupted global logistics.

“The overall market situation since December last year until January had not been too good. So the unit price per TH/s was indeed lower,” Zhang Nangeng, CEO and chairman of Canaan, said in an earning call on Friday. “And the logistics in mainland China had basically stopped around the Chinese new year due to the COVID-19 pandemic. So even though bitcoin’s price was a higher point in February and early March, the pandemic largely affected our sales.”

Zhang said the firm has partnered China-based Semiconductor Manufacturing International Corporation – in addition to its existing supply chain partnership with Samsung and TSMC – to roll out bitcoin mining equipment with 14-nm chips and expects to be able to ship in larger quantity in Q2.

But the firm declines to issue a business outlook for Q2 2020 citing the uncertainty of the COVID-19 pandemic and the uncertainties after Bitcoin’s halving gives itself “very limited visibility on the potential impacts to its business and the markets in which it operates.”

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