Canaan Inc. Reports $97.6M Net Loss as Bitcoin Mining Demand Craters

Canaan Inc., a NASDAQ-listed company specializing in Bitcoin mining hardware, released its Q2 2026 financial report, revealing a significant downturn in revenue and net loss. The company reported a $97.6 million net loss for the quarter, driven by a gross loss of $29.3 million that included a substantial inventory write-down of $25.3 million.

The decrease in revenue can be attributed to the decline in Bitcoin prices from approximately $82,000 to $58,000 during Q2 2026, making mining less profitable and resulting in fewer sales of mining rigs. Canaan's revenue plummeted by 49% compared to the prior quarter and a staggering 68% drop from the same period last year.

Despite this challenging environment, Canaan's self-mining operation expanded meaningfully, with its non-joint-venture mining power reaching 10.05 EH/s, representing 23.3% year-over-year growth at an all-in power cost of approximately $0.043 per kWh. The company also continued its share repurchase program and saw its cash on hand improve to $66 million.

Looking ahead to Q3 2026, Canaan expects revenue to land between $11 million and $15 million, indicating another significant sequential decline. This guidance suggests that the company is preparing for at least one more quarter of substantial contraction, with a margin for error thinning as quarterly losses approach $100 million.