Bitcoin mining rig manufacturer Canaan Creative reported a net loss of $5.6 million for the first quarter of 2020, down from $9.5 million a year earlier.

The Chinese company cut prices of its ASIC-based machines by over 50% in an effort to improve sales, but that wasn’t enough to prevent the heavy loss. Demand slumped as the coronavirus pandemic, which disrupted the movement of goods worldwide, took its toll.

Shares of Canaan fell as much as 3.51% to $3.85 on the Nasdaq Stock Exchange, at Press time. The stock has tanked from a 52-week high of $13

For the period January to March, revenue climbed 45% to $9.4 million from $6.6 million the previous year, driven by a 19% increase in total computing power sold.

According to Canaan’s earnings release published on Friday, the firm sold 0.9 million terahash per second (TH/s) of Bitcoin hashpower, up from 0.7 million TH/s in the same period in 2019. This year’s terahash sales account for about 1% of the BTC network’s current total.

Canaan chief executive officer Zhang Nangeng told analysts…

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Source: https://news.bitcoin.com/canaan-narrows-q1-loss-to-5-6-million-amid-weakening-demand-for-mining-hardware/