Mining machine maker Canaan announced a reduction in net loss in Q2

The gross profit-to-revenue ratio was significantly improved, contributing to reduce net loss by more than 90% compared to the figure of a year ago.

Bitcoin mining rig company Canaan mining on August 31 announced its unaudited financial results for Q2 2020.

While gross profit both increased YoY and QoQ, the company still reported a net loss, although the loss has narrowed significantly over the past 12 months.

The amount of computational power sold in its application-specific integrated circuit (ASIC) hardware is 2.6 million THash / s. This represents an increase of nearly 200% compared with the first quarter figure of 0.9 million THash / s, but a decrease of 18.2% compared to the figure of the previous year.

Sales were also up 160% q-o-q, but down a quarter from last year, at 178.1 million yuan ($ 25.2 million).

However, gross profit of 43.3 million yuan ($ 6.1 million) was up more than 300 percent year-on-year and more than 1,700 percent from Q1 figures.

This is accompanied by a significant increase in gross profit margin for the quarter to nearly 25%. For comparison, the gross margin was 3.5% in the previous quarter and 4.5% in Q2 2019.

The result of this was a reported net loss of RMB 16.8 million ($ 2.4 million). This is less than half of the net loss reported last quarter and is 90% lower than the 263.1 million yuan reported in the same quarter last year.

Canaan was the first mining rig manufacturer to hold a successful IPO in November 2019, even though it raised 25% less of the projected $ 400 million. The share price has fallen about 75% since then, with today’s value of just $ 2.19 from its original sale price of $ 9.

According to Cointelegraph