one of the leading manufacturers of Bitcoin mining equipment may be going through internal turbulence. This is Canaan Creatives, which would have displaced four of its directors.
If this situation is true, it could add more problems to the Chinese firm. The four senior managers were unexpectedly removed from the company’s register. This has generated speculation about possible internal problems.
Canaan Creatives and Ebang are currently the only two manufacturers of Bitcoin mining equipment listed on the New York Stock Exchange. It should be noted that both have presented problems in lifting their quotations on Nasdaq.
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How did Canaan Creatives get to this point?
The company, in previous updates of its registry, had senior officers who are now gone. In this case, they are the co-chairman, Jianping Kong, the founder and CFO Jiaxuan Li, the non-executive director, Qifeng Sun and the public affairs director Songhua Tu.
These four senior officials have all been removed from the most recent update of the company’s register. Now, Bitcoin’s mining equipment manufacturer, Canaan Creatives, has only one director, Nangeng Zhang.
The title of the latter has changed in the ASIC manufacturer’s staffing schedule. Zhang is now general manager and executive director. Previously he held the positions of president and general manager.
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It should be noted that the company is reportedly going through a „devastating time“. The internal disputes between Zhang, who has his epicenter of strength in Beijing, on the one hand, and the directors of the company’s headquarters in the city of Hangzhou, on the other, are reaching a climax.
According to the CoinDesk portal, there is no clarity about the reasons for the dispute, but it is believed that the long-term strategy of the mining equipment manufacturer Bitcoin could be the reason. This fact could become a catastrophe for Canaan Creatives.
The other case that can be taken as a reference is that of Bitmain. In this case, similar problems have caused a sudden fall of the company, which has made it lose weight in the market against the strong threat that represents the competition of the powerful MicroBT.
The losses in the world of mining are real
Problems that add up to more problems
The problems Canaan Creatives has experienced with sales of its Bitcoin mining machines have been remarkable. According to its own reports, losses in 2019 were almost $150 million. Meanwhile, in the first quarter of 2020, they were $5.6 million.
Another of the company’s problems is the bad moment that its quotations are going through on Nasdaq. Since May 14, immediately after the Halving, they began to fall sharply. For weeks, the value of these prices has remained below $2.
Canaan Creatives, is in the top five companies in the ASIC market. Currently, almost all of these firms are in trouble, both in sales, Bitmain and Innosilicon, and in both sales and stock, Canaan Creatives and Ebang.
The only one of these giant companies that seems to be going through a good run is the already mentioned MicroBT. This firm has a good position in the market and its Bitcoin Formula mining equipment has been highly competitive and with an efficiency only equaled by that of Bitmain.