The inventory of considered one of China’s “huge 3” mining companies is in free fall Monday after reporting one other quarterly loss, underscoring the working challenges imposed by COVID-19.

Canaan Artistic, which manufactures mining rigs, released its third-quarter monetary outcomes Monday. The corporate posted a web lack of $12.7 million, or 54 cents per share, on revenues of $24 million. Though quarterly revenues grew 5%, the corporate’s web losses greater than quadrupled.

Quanfu Hong, Canaan’s chief monetary officer, poured chilly water on the unfavorable earnings launch by claiming that demand for mining gear rebounded throughout the quarter — a development anticipated to proceed within the remaining stretch of 2020. He mentioned:

“(…) we’ve got acquired numerous pre-sale orders that are scheduled for supply beginning within the fourth quarter of 2020.”

Canaan’s share worth, a constant underperformer since debuting in Nov 19, plunged greater than 10% Monday. The inventory was final seen nursing losses of round 9.5%.

Canaan inventory by Yahoo Finance

Canaan crashed in lockstep with the broader monetary markets in February. After a short restoration, the inventory resumed its plunge by the spring. It could finally stabilize under $3.00 earlier than catching a powerful bid in early November, presumably attributable to a correlation with Bitcoin (BTC).

Together with Bitmain, Ebang, and Microbt, Canaan dominates the worldwide marketplace for SHA256 miners. As a consequence of broad business consolidation, it’s attainable that solely “2 or 3 gamers will survive into the long run,” according to analysis from crypto by-product change Bitmex.

The Chinese language mining business might have suffered essentially the most attributable to COVID-related provide challenges, according to crypto analytics firm Tokeninsight. Past the rapid affect of the pandemic, the phase seems to be in development mode, particularly within the manufacturing sector, the place “new gamers are wanting to enter the sphere.”