American depositary receipts of Canaan fell after the company reported a wider loss and sharply lower revenue in the second quarter, which was a difficult time for bitcoin mining.
ADRs declined 10%, to 32 cents, on Tuesday. They have lost nearly 60% of their value year to date.
The crypto-mining company before the bell posted a loss of $97.6 million, or 90 cents a share, compared with a loss of $11.1 million, or 18 cents a share, a year earlier.
Total revenue tumbled to $31.9 million from $100.2 million a year ago.
Products revenue fell to $13.6 million from $71.9 million last year, primarily due to the decreased computing power sold and lower average selling prices. Mining revenue slipped to $17.7 million from $28.1 million last year, also hurt by a decrease in the average bitcoin price.
Chief Executive Nangeng Zhang said the second quarter was a difficult time for bitcoin mining, as renewed bitcoin price pressure, weaker mining economics,and seasonal power constraints weighed on equipment demand and profitability.
"Despite the quarter's market headwinds, we focused on building the capabilities that we believe are necessary for Canaan's next phase," he added, pointing to fleet-upgrade projects and the continued development of new infrastructure products.
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