bitcoin Mining equipment maker Canaan said its third-quarter net income fell 88% year-on-year to 61.1 million yuan ($8.6 million), which he called negative market dynamics as the BTC price slumped to around $16,000.
Bitcoin Mining Company’s Net Revenue Drops 88%
The Beijing-based firm said on Monday that total computer power sold fell 48.5% to 3.5 million terahash per second, while revenue fell 26% to 978.2 million yuan.
While Argo Blockchain and Core Scientific both face liquidity issues, many mining firms have felt pressured over the past few months, particularly data center provider Compute North, which filed for bankruptcy in September.
Nangeng Zhang, CEO of Canaan company, said in his statement on the subject:
“The bitcoin mining market deteriorated in the third quarter as the BTC price fluctuated and recently dropped to around $16k.
Adverse market dynamics have significantly hampered the revenues and cash flows of BTC miners. As miners had to reduce their demand for processing power, we had to lower our selling price in response.”
Canaan’s CFO, James Jin Cheng, said that market conditions are expected to continue to deteriorate due to “Bitcoin’s bearish trend, rising energy prices and miners under increasing cash pressure”.
The shares of the company, which fell in the first place, are trading at $2.98 at the time of writing, with a 10% rise in the last 24 hours.
*Not investment advice.
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