Chinese Bitcoin mining hardware manufacturer, Canaan Creative (Nasdaq: CAN), announced on Monday that it closed 2020 with total revenue of $68.6 million, out of which $5.9 million were generated in the fourth quarter of the year.
It sold a total of 6.6 million THash/s of computing power, which was a 37.1 percent decline from its sales in the previous year. Despite that, the company significantly improved its earnings.
According to Canaan, its gross profit for the year came in at $5.8 million, recovering from gross losses in the last year. The net losses for the year were also reduced to $33 million, compared to a grave loss of $148 million in 2019.
Canaan is one of the top Bitcoin mining ASIC manufacturers and sells Avalon-branded miners. Though the Bitcoin price started its rally last year, Canaan could not turn a profit after its interests and expenses.
Additionally, the company made heavy cuts in its expenses in research and developments, and sales and marketing. Moreover, its administrative expenses were reduced by 62.1 percent to $20.2 million last year.
However, Canaan is projecting an optimistic outlook for 2021. The Hangzhou-based firm highlighted that it is expecting a revenue of at least 400 million yuan (around $61 million) for the first quarter of the ongoing year.
“Due to supply chain disruptions, as the price of Bitcoin rallied in late 2020, we experienced a surge of demand for high-quality mining machines both in and outside of China,” Canaan’s Chief Financial Officer, Tong He said.
“By leveraging our established market presence, we further optimized our international customer base, secured a large number of pre-orders from clients in both domestic and international markets, and streamlined our supply chain management to optimize our cash flow. Our abundant cash reserve gives us the confidence to expand our global client service coverage and develop more first-rate products going forward.”