Talk about a bad time to not have product to sell.
Shares of bitcoin mining machine maker Canaan (Nasdaq: CAN) plummeted after the company reported a 75% drop in Q4 revenue on Monday as supply-chain issues prevented the company from capitalizing on a roaring bull market and a resulting surge in demand for mining machines.
“The outbreak of COVID-19 caused supply chain disruptions and thus negatively impacted our revenues in the fourth quarter,” according to CEO Nangen Zhang.For the Q4, the Hangzhou-based firm posted Q4 revenue of $5.9 million, down from $24 million in Q3 of the same year. Total computing power sold was 0.2 million Thash/s, representing a year-over-year decrease of 93.1% from 2.9 million.The market didn’t respond kindly to the report, with American Depositary Receipts of the maker of ASIC mining machines dropping 34.2%, down $6.41, to 12.25 in recent trading.The company’s adjusted loss, however, narrowed to $11.2 million from $28.6 million as the company reported drops in R&D expense, selling & marketing costs, and general and administrative costs.
Looking ahead, the mining machine maker said it already had $174 million of contracted orders with $66 million of cash advance from customers as of Dec. 31, 2020. The company forecasts at least $61 million in revenue for the ongoing Q1.
