Canaan’s 2019 total net revenue plummeted to nearly $200 million figure.
Nasdaq-listed Bitcoin mining equipment manufacturer, Canaan, reported a net loss of $148 million for 2019, according to the latest financial results filed with the Securities and Exchange Commission (SEC).
The latest unaudited Q4 and 2019 financial results from the China-based company said that its total 2019 net revenue was $204.3 million. This represents approximately half of the $384 million the company generated in 2018.
Total net revenue increased in Q4 2019
In the same quarter, the company’s total net revenue increased by 66.8%, representing $66.5 million. This was more than half of what it had generated in the same period in 2018.
The company stated that its growth was mainly driven by increases in total computing power sold, which was 2.9 million Trash/s in Q4 2019. This represented an 88.6% increase from the previous year.
COVID-19 as the key challenge to face in 2020
According to the SEC’s registration on Canaan’s business outlook, the first challenge that the company is facing in 2020 is the COVID-19 outbreak. Canaan appears to have been affected by current limited commercial activities, including those on the cryptocurrency market.
Their gross loss in Q4 was $96.7 million, compared to a gross profit of $1.6 million during the same period in 2018.
Canaan’s IPO class action lawsuit underway
This news comes after Cointelegraph reported on April 7 the Canaan securities IPO class action lawsuit has a lead plaintiff motion deadline set for May 4, 2020. This motion will decide who will represent the company’s litigating stakeholders in the proceedings.
According to the lawsuit, Canaan’s IPO is accused of having violated the Securities Act of 1993. The claim is that its registration statement was allegedly false and provided investors with misleading information.