Canaan Creative, a Nasdaq listed Bitcoin miner manufacturer, has reported another loss in Q3 according to the latest unaudited financials released on Nov 30. This time the number jumped to $12.3 million, which is around four times the $2.38 million reported for the previous quarter. Contrary to the BTC market performance, the firm appears to be struggling after its share price tumbled on the announcement of the Q3 results.

Revenues also dropped to $24 million compared to $100 million in Q3 of 2019; however, this was a 5% increase from Canaan’s Q2 revenues this year. The financial report quotes a figure of $26 million for cash equivalents, which is an 18% jump from its previous $22 million in Q2. It further highlights that Canaan has allocated $30 million into short-term financial products where it can withdraw liquidity conveniently at any time.

Canaan’s CFO, Quanfu Hong, defended the performance and attributed a big part of the loss to reduced activity at the onset of the COVID-19 pandemic. Hong noted that demand has started to increase, and they are set to be back on track with Q4 pre-sale orders,

“Demand for mining machines in the market continued to rebound in Q3 2020. We have received a large number of pre-sale orders scheduled for delivery starting in the fourth quarter.”

Nonetheless, Canaan is still taking a hit on its market share according to the latest stats; its terra hashes sales tanked to 2.9 million compared to 3.7 million in Q3 of 2019. On average, one T/H costs $8.27 this year, while last year’s price was well over $27 per T/H. Its competitors Microbt, Bitmain, and Ebaang, continue to capitalize on the shortcomings.

Currently, one Canaan share price is trading at $5, having lost 13% within the past 24 hours. Like Bitmain, the firm has also been a victim of internal wrangles, which saw some of its directors dropped from the registry back in July.

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