Canaan reported a $88.7 million net loss for Q1, citing lower Bitcoin prices and Middle East conflict impacts on energy costs.
Canaan Inc. reported a first-quarter net loss of $88.7 million, widening from an $85 million loss in the prior quarter, as revenue fell 68% to $62.7 million. The Bitcoin mining firm attributed the decline to lower cryptocurrency prices and rising operational challenges, including volatile energy costs.
The company reduced operating expenses to $31.4 million and cut staffing costs to improve survivability. CEO Nangeng Zhang highlighted geopolitical uncertainties, including Middle East conflicts, as a factor pressuring the industry.
Shares dropped over 13% to $0.418, nearing an all-time low of $0.38 reached last month.