Canaan reports $33M net loss for 2020 despite bullish Bitcoin price action

Bitcoin’s bullish 2020 closeout was not sufficient to forestall Canaan from incurring a net loss in 2020.

According to the corporate’s unaudited monetary report for This fall 2020, the Bitcoin (BTC) miner maker’s net loss for 2020 was about $33 million. However, Canaan’s 2020 net loss is considerably decrease than the $148 million recorded in 2019.

Indeed, the discount in net loss for Canaan was a standard theme throughout the corporate’s quarterly efficiency in 2020. As beforehand reported by Cointelegraph, important progress in gross margin on the sale of mining rigs helped the corporate reduce its year-on-year net loss by over 90% in Q2 2020.

As a part of the report issued on Monday, Canaan revealed that its 2020 net income amounted to about $68.6 million — a 66% decline from the income figures within the 2019 financials.

The marked income decline additionally meant Canaan’s year-on-year gross revenue took a steep tumble falling from $79 million in 2019 to below $6 million in 2020.

However, despite the drop in net income, Canaan stated the pattern will reverse in 2021, with the corporate forecasting a $61-million net income goal for Q1 2021.

Like different Chinese miners, Canaan’s crypto mining stock is on backorder amid the ongoing global semiconductor shortage.

According to Canaan CEO Nancheng Zhang, the amount of pre-orders for the corporate’s Bitcoin mining {hardware} will drive income progress, stating:

“Although the outbreak of COVID-19 brought about provide chain disruptions and thus negatively impacted our revenues within the fourth quarter of 2020, our market management has enabled us to realize $174 million contracted orders with $66 million of money advance from clients as of December 31, 2020, thus laying a strong basis for substantial income progress for 2021.”

At the time of writing, the inventory price of the Nasdaq-listed Canaan is about 50% down from its 2021 excessive attained a month in the past. Despite the drop, Canaan continues to be up 179% year-to-date.