A bullish Bitcoin closing in 2020 was not enough to avert a net loss in Canaan in 2020.

According to the company’s unaudited financial statements in the fourth quarter of 2020, the net loss of Bitcoin (BTC) for 2020 was approximately $ 33 million. However, Kanaan’s net loss in 2020 is well below the $ 148 million recorded in 2019.

In fact, Canaan’s net loss reduction has been a popular topic for the company’s quarterly development in 2020. As Cointelegraph previously reported, strong growth in gross profit from mining hardware sales helped reduce net losses year on year. With over 90% in the second quarter of 2020.

As part of a report released Monday, Kanaan showed that net revenue in 2020 was around $ 68.6 million, 66% down from the 2019 billing turnover.

The remarkable decline in revenue has also caused Kanaan’s total annual earnings to drop sharply from $ 79 million in 2019 to less than $ 6 million in 2020.

However, despite the lower net profit, Kanaan said the trend will reverse in 2021 and the company expects a net profit target of $ 61 million in the first quarter of 2021.

Like other Chinese miners, the crypto mining reserves in Canaan are limited by the ongoing shortage of global semiconductors.

According to Canaan CEO Nancheng Zhang, the volume of pre-orders for the company’s bitcoin mining will lead to revenue growth, stating:

“ Although the COVID-19 outbreak caused supply chain disruptions and thus negatively affected our revenue in the fourth quarter of 2020, our market leadership allowed us to receive $ 174 million in contract applications with $ 66 million in advance from clients. As of Dec. 31, 2020, thus laying a solid foundation for significant revenue growth by 2021. ‘
At the time of writing, the Nasdaq-listed Canaan stock price is nearly 50% lower than the 2021 level reached a month ago. Despite the fall, Canaan’s rise remains 179% since the start of the year.

Source: CoinTelegraph