Bitcoin’s bullish 2020 closeout was once now not sufficient to forestall Canaan from incurring a net loss in 2020.

According to the corporate’s unaudited monetary file for This fall 2020, the Bitcoin (BTC) miner maker’s net loss for 2020 was once about $33 million. However, Canaan’s 2020 net loss is considerably less than the $148 million recorded in 2019.

Indeed, the aid in net loss for Canaan was once a not unusual theme around the corporate’s quarterly efficiency in 2020. As in the past reported by way of Cointelegraph, vital enlargement in gross margin at the sale of mining rigs helped the corporate reduce its year-on-year net loss by way of over 90% in Q2 2020.

As a part of the file issued on Monday, Canaan published that its 2020 net earnings amounted to about $68.6 million — a 66% decline from the earnings figures within the 2019 financials.

The marked earnings decline additionally supposed Canaan’s year-on-year gross benefit took a steep tumble falling from $79 million in 2019 to below $6 million in 2020.

However, despite the drop in net earnings, Canaan mentioned the rage will opposite in 2021, with the corporate forecasting a $61-million net earnings goal for Q1 2021.

Like different Chinese miners, Canaan’s crypto mining stock is on backorder amid the continued world semiconductor scarcity.

According to Canaan CEO Nancheng Zhang, the quantity of pre-orders for the corporate’s Bitcoin mining {hardware} will pressure earnings enlargement, declaring:

“Although the outbreak of COVID-19 caused supply chain disruptions and thus negatively impacted our revenues in the fourth quarter of 2020, our market leadership has enabled us to attain $174 million contracted orders with $66 million of cash advance from customers as of December 31, 2020, thus laying a solid foundation for substantial revenue growth for 2021.”

At the time of writing, the inventory price of the Nasdaq-listed Canaan is ready 50% down from its 2021 top attained a month in the past. Despite the drop, Canaan remains to be up 179% year-to-date.

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