Canaan, a Chinese Bitcoin mining rig manufacturer, has recently published its financial report for Q3 2020. This report reveals a huge loss of $12.7 million, which has increased five-fold as compared to the loss recorded in Q2 of this year. The firm reports a decrease in net revenue as well, 8% down as compared to the previous quarter’s revenue. There is a slide in revenue of the firm when compared to the performance in the previous year. Canaan Seen Increase in Sale Due to Better Bitcoin Performance Even though Canaan has reported a loss in Q3 2020, the company has seen a certain increase in sales since October 2020. This increase is due to the positive Bitcoin performance and the received $45 million in advance payments for both mining hardware sales and preorders. The market capitalization of Canaan is currently around $900 million, which has seen a huge surge as compared to the past few months. Back in September 2020, the market cap of the firm was at $300 million. The positive Bitcoin price performance is the major factor behind this increase in market cap. As compared to the previous quarter, the stock price of the firm is now up by 170% in Q4 2020. Competing Favourably in Bitcoin Mining Rig Market Canaan has launched the A1246 miner in October 2020, which is going to help the firm to compete in the Bitcoin mining rig. Back in June, the firm also revealed two models that were not good with mining efficiency as compared to others. Bitcoin price has recently surged above $19K, which means that mining rig manufacturers are going to see a huge demand for mining hardware ahead. This might be the time for the firm to overcome the losses that they have incurred in the third quarter of this year.
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