Canaan reported second-quarter revenue of $31.9 million as weaker Bitcoin prices, softer mining-machine demand and seasonal power constraints pressured results, while the company’s cryptocurrency treasury reached a record level.
Revenue declined from $100.2 million in the year-earlier quarter and $62.7 million in the first quarter of 2026. Product revenue was $13.6 million and mining revenue was $17.7 million.
Canaan mined 243 Bitcoin during the quarter and ended the period with a digital-asset treasury of approximately 1,915.5 BTC and 3,951.7 ETH.
The company’s non-joint-venture installed mining computing power reached 10.05 EH/s, up 23.3% year over year, while its all-in electricity cost was approximately $0.043 per kWh.
At Project ABC, in which Canaan has a 49% interest, installed hashrate reached 4.85 EH/s by the end of July as the company continued upgrading the mining fleet.
Canaan is also developing its broader compute and energy infrastructure strategy, including cost-advantaged power sites, compute-to-heat reuse applications and new Avalon Home products designed for household heating applications.
Second-quarter results included $25.3 million of inventory and related write-downs, a $9.2 million impairment of property and equipment and an $18.2 million fair-value loss on cryptocurrency following declines in digital-asset prices.
Canaan had repurchased approximately 16.4 million ADSs for $7.4 million under its current repurchase program as of September 8. Management said it intends to use a more active capital-allocation framework that could include monetizing portions of its digital-asset treasury to fund additional repurchases.
For the third quarter, Canaan expects revenue of only $11 million to $15 million, reflecting near-term market conditions and changing customer demand.
KEY QUOTE:
“Q2 2026 presented a difficult period for bitcoin mining, as renewed bitcoin price pressure, weaker mining economics, and seasonal power constraints weighed on equipment demand and profitability. Our team responded by staying close to customers, matching production to demand, and protecting liquidity. We generated US$31.9 million in total revenue with 2.5 EH/s of computing power sold during the second quarter. Our mining operations produced 243 bitcoins and continued to generate positive cash contribution before depreciation, supported by competitive power economics, while our digital asset treasury reached a record 1,915 BTC and 3,952 ETH at quarter-end. Beyond revenue generation, we kept our inventory lean, tightened spending and cash-flow management, and further streamlined our organization.
“Despite the quarter’s market headwinds, we focused on building the capabilities that we believe are necessary for Canaan’s next phase. Together with our partner, we advanced the fleet upgrade at Project ABC, where installed hashrate reached 4.85 EH/s by the end of July. We will continue to explore cost-advantaged sites that can support efficient deployment and cash generation, while advancing collaboration around compute-to-heat reuse applications. On the product side, we kept optimizing the A16 series, focusing on cost-effective air-cooled models and high-temperature water-cooled models, and developed new Avalon Home products for household heating applications, with mass-production preparations underway for the winter heating season. In parallel, we continued advancing our efforts on long-term power resources in North America with further progress. We will provide updates when we reach an appropriate stage for disclosure. As we expand beyond mining equipment and operations into compute-plus-energy infrastructure, these initiatives are designed to improve fleet efficiency, broaden our operating flexibility, and strengthen our foundation for long-term value creation as the industry evolves.”
Nangeng Zhang, Chairman and Chief Executive Officer of Canaan
