The stock of one of China's "Large Three" mining firms is in free fall Monday later reporting another quarterly loss, underscoring the operating challenges imposed by COVID-nineteen.

Canaan Creative, which manufactures mining rigs, released its 3rd-quarter fiscal results Monday. The company posted a net loss of $12.7 million, or 54 cents per share, on revenues of $24 million. Although quarterly revenues grew v%, the company'south net losses more than than quadrupled.

Quanfu Hong, Canaan's chief financial officer, poured cold h2o on the negative earnings release past claiming that need for mining equipment rebounded during the quarter — a trend expected to continue in the final stretch of 2020. He said:

"We take received a large number of pre-auction orders which are scheduled for delivery starting in the fourth quarter of 2020."

Canaan's share price, a consistent underperformer since debuting on Nov. 19, plunged more than 10% Monday. The stock was terminal seen nursing losses of around ix.5%.

Canaan stock by Yahoo Finance

Canaan crashed in lockstep with the broader financial markets in Feb. After a brief recovery, the stock resumed its plunge through the spring. It would eventually stabilize below $3.00 before catching a strong bid in early on Nov, possibly due to a correlation with Bitcoin (BTC).

Along with Bitmain, Ebang and Microbt, Canaan dominates the global market for SHA-256 miners. Due to broad industry consolidation, information technology's possible that only "2 or 3 players will survive into the longer term," according to enquiry from crypto derivatives commutation Bitmex.

The Chinese mining industry may have suffered the nearly due to COVID-19-related supply challenges, co-ordinate to crypto analytics company Tokeninsight. Beyond the immediate touch on of the pandemic, the segment appears to be in growth mode, especially in the manufacturing sector, where "New players are eager to enter the field."