The stock of one of China’s "Big Three" mining firms is in free fall Monday after reporting another quarterly loss, underscoring the operating challenges imposed by COVID-19.

Canaan Creative, which manufactures mining rigs, released its third-quarter financial 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 5%, the company’s net losses more than quadrupled.

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

“We have received a large number of pre-sale 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 last seen nursing losses of around 9.5%.

Canaan stock by Yahoo Finance

Canaan crashed in lockstep with the broader financial markets in February. 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 November, 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, it’s possible that only “2 or 3 players will survive into the longer term,” according to research from crypto derivatives exchange Bitmex.

The Chinese mining industry may have suffered the most due to COVID-19-related supply challenges, according to crypto analytics company Tokeninsight. Beyond the immediate impact 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.”