One of China’s Big Three mining companies experienced a free fall on Monday after reporting a new quarterly loss and underscoring operational concerns for COVID-19.

Mining company Canaan Creative released its third-quarter financial results on Monday. The company recorded a net loss of $ 12.7 million, or 54 cents a share, and revenue of $ 24 million. Despite increasing quarterly revenue by 5%, the company’s net loss more than quadrupled.

Kuanfu Hong, Canaan’s chief financial officer, poured cold water on the negative earnings report, saying that demand for mining equipment increased during the quarter – a trend that is expected to continue into the second half of 2020. He said:

“We have a lot of pre-sales scheduled for the fourth quarter of 2020.”
Kanaan’s stock price, which has been consistently delayed since it debuted on November 19, is down more than 10% on Monday. The share of observed modern care losses is around 9.5%.

Yahoo Finance Canaan Stock
Canaan collapsed with broader financial markets in February. After a short improvement, stocks resumed their fall in the spring. It will eventually settle below $ 3.00 before a strong price appears in early November, possibly due to the Bitcoin (BTC) correlation.

Along with Bitmain, Ebang, and Microbt, Canaan dominates the global SHA-256 mining market. With the industry broadly standardizing over the long term, only two or three players can survive, according to a study by Bitmex of cryptocurrency exchange.

According to crypto analysis firm Tokeninsight, the Chinese mining industry is perhaps the hardest hit by the supply woes related to COVID-19. Regardless of the direct impact of the epidemic, the sector appears to be growing, especially in the manufacturing sector, where “new entrants are eager to enter the market”.

Source: CoinTelegraph