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Bitcoin miner manufacturer reports €137 million loss over 2019

Bitcoin miner manufacturer reports €137 million loss over 2019

Canaan, a China-based bitcoin mining equipment manufacturer, listed on the Nasdaq, filed its financial reports for 2019 with the Securities and Exchange Commission. The report showed that revenue had almost halved in comparison with 2018, from €350 million to €185 million. The net result for 2019 was a loss of around €137 million, this also in contrast with 2018 in which the company was able to generate a profit of €15 million.

The mining market has grown into a highly competitive market in which only the most efficient players are able to make a profit. Less efficient players are forced out of the market. Also, the price of Bitcoin has a significant impact on a company‘s ability to generate profit. Canaan confirms that the loss is mainly due to disappointing price action from Bitcoin.

In its outlook for 2020, the company stated its most significant challenge for the year would be to deal with the outbreak of COVID-19 and its effect on sales and production. For the first quarter of 2020, the performance expectations have been lowered.

The first challenge that the company is facing in 2020 is the COVID-19 outbreak. At the current stage of development, our top priority is the health and safety of our employees. As a result of the impact of the COVID-19 outbreak, a widespread health crisis that adversely affected general commercial activities, the economies, financial markets, as well as the cryptocurrency market activities, we have lowered our expectations for business in the year of 2020.

Just as every other company involved in mining Canaan is also preparing for the Bitcoin halving which is to take place in May.