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Canaan, a leading mining rig manufacturer, reported a significant decline in third-quarter earnings, along with a strategic move to shore up its finances through a new share offering. . The company, navigating through a challenging market environment, revealed revenue fell 55% to $33.3 million in the quarter, compared with the same period last year. This decline in sales was attributed to reduced quantities () mined, intensified price competition, and skyrocketing energy costs, resulting in a net loss of $110.7 million. This is in stark contrast to the $6.3 million net income reported the previous year.
Despite these setbacks, Canaan remains proactive in its financial strategy. Following the decline, the company announced plans to introduce a new share sale worth $148 million. The move comes after securing a funding deal with an institutional investor for $125 million in preferred shares on Monday.
However, the broader cryptocurrency mining industry has shown signs of recovery, with Bitcoin miners earning a record $44 million on November 13, thanks to easing inflation and a rebound in Bitcoin prices. . Despite these favorable market conditions, Canaan expects its fourth-quarter revenue to be flat, suggesting a cautious outlook for the near future.
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