Chinese-founded Bitcoin mining technology manufacturer Canaan has released an earnings report today showing a net loss in its operations for 1Q 2020. According to the company it made $9.4 million in revenue for the first three months this year with a growth of 44.6% compared to the same period last year. At the same time the company incurred expenses totaling $15.2 million as a result of pricing down its hardware and research and development.

As indicated by Coindesk, Canaan had cut down the prices for its mining hardware sold in the first three months by more than 50% to just $10 per TH/s, reflecting an overall slowdown of the buying interest into mining hardware amid Bitcoin’s halving event and the COVID-19 pandemic that has disrupted global logistics. For context, Canaan booked revenue of $66.5 million in 2019 with 2.9 million TH/s of Bitcoin computing power sold, meaning the average price was around $22 per TH/s last year.

The company is also losing cash according to the filing, with $37 million in cash and equivalents at the end of 1Q 2020, compared to $71 million as of the end of last year. “The decrease was mainly due to higher short-term investments as the Company invested RMB173.4 million (US$24.5 million) in short-term investments as of March 31, 2020,” Canaan said in the report.