Bitcoin miner Canaan attributes wider losses to lower BTC prices and a $25 million inventory write-down despite increased hashrate capacity.
Bitcoin mining firm Canaan posted an $88.7 million net loss in the first quarter, driven by declining Bitcoin prices and a $25 million inventory write-down. The company’s gross loss reached $23 million, while operating losses totaled $54.3 million.
Canaan expanded its self-mining capacity to 11 exahashes per second, a 66% year-over-year increase, and held 1,808 Bitcoin valued at $121 million as of March 31. The company also acquired a 49% stake in three West Texas projects, securing low power rates on the ERCOT grid.
Shares fell 3.54% to $0.4827 on Monday and dropped an additional 7.71% in pre-market trading to $0.4455. Canaan guided Q2 revenues between $35 million and $45 million, signaling continued pressure.