Canaan Creative, the Chinese maker of bitcoin mining hardware, reported a net loss of $2.4 million during the second quarter of 2020, down from $5.6 million in the previous quarter. It is the second consecutive quarter of narrowing losses for the firm, hit hard by falling demand amid the Covid-19-induced global recession.

For the three months to June 30, revenue soared 160% to $25.2 million from $9.6 million the quarter before, driven by a near 200% increase in total computing power sold.

According to Canaans earnings release of August 31, the Beijing-based company sold 2.6 million terahash per second (TH/s) of Bitcoin hashpower, up from 0.9 million TH/s during the first quarter. Year-over-year, total computing power sold declined 18% from 3.2 million TH/s.

Shares of Canaan fell 0.72% to $2.08 on the Nasdaq Stock Exchange, at the time of writing. The stock has tumbled more than 80% since listing on the exchange last November. Then, it traded at a high of $13.

Canaan chief executive officer Nangeng Zhang commented: During the second quarter of 2020, the Covid-19 pandemic continued to impact the lives of people around the world and the Bitcoin halving event also caused significant volatility in bitcoin prices. Zhang added:

We are confident that ourpipeline of next-generation products will continue to sustain our growth momentum in the future.

In the review quarter, research and development expenses declined to $3.7 million from $5.9 million previously, said the firm, which manufactures the Avalon range of ASIC bitcoin mining chips.

Canaan reported cash and cash equivalents of $22.2 million for the June quarter, down from $37.3 million in Q1. The company said the decline is a result of higher short-term investments, which amounted to a total of $49.2 million by the end of June.

For the second quarter running, Canaan did not issue guidance for the next three trading months, citing continued uncertainty from the rapidly changing global environment related to the Covid-19 pandemic and corresponding economic downturn.

What do you think about Canaans continuing losses? Let us know in the comments section below.

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Canaan Cuts Losses for Second Successive Quarter, Down To $2.4M in Q2; Demand Remains Weak - Bitcoin News