Canaan, a leading mining gear maker, reported a significant decline in third-quarter profits, juxtaposed with a strategic move to strengthen its finances through a new stock issue. The company, which operates in a difficult market environment, announced a 55% drop in revenue to $33.3 million for the quarter compared to the same period last year. last year. This decline in sales is attributed to fewer bitcoins (BTC) mined, increased price competition, and soaring energy costs, which resulted in a net loss of $110.7 million. This figure stands in stark contrast to the net profit of $6.3 million recorded the previous year.
Despite these setbacks, Canaan remains proactive in its financial strategy. Following the decline, the company announced plans to conduct a new stock sale worth $148 million. The move follows the conclusion of a financing deal with an institutional investor for preferred shares worth $125 million on Monday.
The cryptocurrency mining industry in general, however, has shown signs of recovery, with bitcoin miners earning a record $44 million on November 13, thanks to falling inflation and rising prices of . Despite these favorable market conditions, Canaan expects its fourth quarter revenue to remain unchanged, suggesting a cautious outlook for the immediate future.
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