Why Canaan Stock Crumbled on Monday
Shares of bitcoin-mining device maker Canaan (NASDAQ: CAN) plunged on Monday after the company delivered its results for the third quarter. Revenue was down sharply and it reported a loss. Considering the stock was up by more than 150% in just the past month, it's not surprising to see it give back some of those gains. At the close of trading, Canaan stock was down 13%.
In Q3, Canaan's revenue plummeted nearly 76% year over year to $24 million. In terms of computing power, sales were only down about 21%. But the average selling price for that computing power was down sharply as the company offloaded old inventory on the cheap. All told, the company booked a net loss of $12.7 million.
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Source Fool.com
