TL;DR:
- Canaan recorded a internet lack of $88.7 million in Q1 2026, reporting whole revenues of $62.7 million.
- A drop in Bitcoin’s value and a $25 million stock write-down dragged gear gross sales down 75% from the earlier quarter.
- The corporate initiatives revenues of between $35 and $45 million for Q2, implying one other sequential contraction.
Canaan, a producer of Bitcoin mining gear, reported a internet lack of $88.7 million within the first quarter of 2026. The decline in BTC’s value compressed working margins and compelled the corporate to report a $25 million stock write-down, in keeping with a press launch revealed not too long ago.
Complete revenues for the quarter ended March 31 reached $62.7 million, in comparison with $196.3 million within the prior quarter. Gross sales of business mining gear, the first income supply at $39.6 million, plunged 75% from the earlier interval. The corporate’s personal mining operations contributed roughly $19.1 million, whereas the residence mining section added $2.7 million, a class that doubled its year-over-year consequence.
The gross loss for the quarter was $23 million, and the working loss totaled $54.3 million. Jin (James) Cheng, Chief Monetary Officer of Canaan, acknowledged the impression of the decline in Bitcoin’s value and hashprice, whereas noting that the corporate’s manufacturing held up higher than these market variables.
Canaan’s Self-Mining Falls Wanting Offsetting the Harm
Canaan expanded its self-mining capability to 11 exahashes per second, a 66% year-over-year enhance. On the shut of the quarter, the corporate held roughly 1,808 Bitcoin on its steadiness sheet, valued at roughly $121 million.
Through the first quarter, the corporate additionally accomplished the acquisition of the 49% stake that Cipher Mining held in three three way partnership initiatives in western Texas, with a mixed capability of 4.4 EH/s and 120 megawatts of energy. The transaction was closed by way of a share issuance, with no money disbursements, and grants Canaan entry to electrical energy charges under three cents per kilowatt-hour on the ERCOT grid.
For the second quarter, the corporate projected revenues of between $35 and $45 million, implying one other sequential contraction. Canaan’s shares closed Monday with a decline of three.54% to $0.4827, and fell a further 7.71% in pre-market buying and selling on Tuesday.
A Widespread Decline Throughout Mining Firms
The detrimental outcomes weren’t a phenomenon unique to Canaan. Riot Platforms, Core Scientific, CleanSpark, and TeraWulf additionally reported rising losses within the first quarter. MARA recorded a internet lack of $1.3 billion, of which roughly $1 billion corresponded to non-cash accounting changes on its Bitcoin holdings.
