Canaan's report showed a significant drop in profits
Q3 was quite challenging for mining equipment maker Canaan. Net income was at $8.6 million, down 90% from the previous period.
Gross profit was also down. The drop was 74.8% (down to $32.9 million). According to the CEO of Canaan:
The negative dynamics developed in the mining market and the entire cryptocurrency industry have prevented miners from generating cash flow and income.
Also, Nangeng Zhao noted that despite sales volumes being in line with forecasts, the company has been forced to adjust the value under previously signed contracts.
The head of the company also noted:
Despite the prolonged downturn in the entire industry, the scale of the company's business continued to grow. Mining was able to make a profit by the end of the quarter. At the moment, the priority is to maintain liquidity and minimize costs.
At the premarket Canaan's shares rose slightly in value and reached the level of $2.71