Canaan Reports Record Loss as Bitcoin Prices Continue to Plummet

Canaan Inc., a leading manufacturer of Bitcoin mining hardware, reported a staggering net loss of $97.6 million for Q2 2026. The Singapore-based company's revenue collapsed by 68% year-over-year and 49% from the previous quarter to just $31.9 million.

The decline in Bitcoin prices from roughly $82,000 to approximately $58,000 during the quarter had a ripple effect on Canaan's income statement. The company also took a painful $25.3 million inventory write-down, acknowledging that its stockpiled mining rigs are worth less than what it paid to produce them.

Canaan's self-mining operations did not provide much of a cushion either, as the coins generated far less revenue at depressed prices. The company ended the quarter holding a record digital asset treasury of 1,915.5 BTC and 3,951.7 ETH.

Management's guidance for Q3 2026 is sobering, with projected revenue ranging from $11 million to $15 million, representing another sequential decline. This suggests that management does not see a near-term recovery in hardware demand and is bracing for continued pain through at least the end of the quarter.