Canaan Inc Reports Q2 2026 Financial Results

Canaan Inc., a leading innovator in compute and energy infrastructure, reported its unaudited financial results for the second quarter of 2026, highlighting significant developments in its operations and strategy.

The company achieved a record cryptocurrency treasury, with a total of 1,915 Bitcoin (BTC) and 3,952 Ethereum (ETH) by the end of the quarter. This milestone underscores Canaan’s ongoing commitment to diversifying its asset portfolio. Additionally, the firm mined 243 BTC during the quarter, contributing positively to its cash flow.

Canaan continued its efforts to optimize its operations, repurchasing approximately 16.4 million American Depositary Shares (ADSs) for an aggregate of US$7.4 million as of September 8, 2026. These share repurchases are part of the company's strategy to improve its equity valuation by utilizing its substantial digital asset treasury and cash liquidity.

In terms of financial performance, Canaan Inc. reported total revenues of US$31.9 million for the second quarter of 2026, down from US$62.7 million in the first quarter of 2026 and US$100.2 million in the same period of 2025. Product revenue was US$13.6 million, reflecting a decline in demand for mining rigs and a lower average selling price for computing power. Mining revenue stood at US$17.7 million, affected by a decrease in the average Bitcoin price and seasonal power constraints.

Costs remained relatively stable, with total operating expenses at US$40.1 million. Research and development expenses decreased to US$14.9 million, driven by a reduction in staff costs. Sales and marketing expenses rose to US$1.9 million, mainly due to increased staff costs. General and administrative expenses were US$15.1 million, with a decrease in professional service fees and share-based compensation expenses.

Despite the challenging market conditions, Canaan Inc. managed to generate a gross loss of US$29.3 million, compared to a gross loss of US$22.9 million in the first quarter of 2026 and a gross profit of US$9.3 thousand in the same period of 2025. The company's loss before income tax expense was US$92.2 million, compared to US$88.8 million in the first quarter of 2026 and US$10.3 million in the second quarter of 2025.

Canaan Inc. also faced significant non-cash charges, including a US$25.3 million inventory write-down, prepayment write-down, and provision for reserve for inventory purchase commitments, a US$9.2 million impairment of property and equipment, and a US$18.2 million loss of fair value change in cryptocurrency, all resulting from a decrease in cryptocurrency prices during the second quarter.

Looking ahead, Canaan Inc. plans to maintain disciplined inventory levels, secure power capacity for its compute-energy infrastructure strategy, and explore cost-advantaged sites. The company will continue to advance initiatives such as the fleet upgrade at Project ABC, the development of new Avalon Home products, and the expansion of its efforts on long-term power resources in North America.

Chairman and CEO Nangeng Zhang stated, "Q2 2026 presented a difficult period for bitcoin mining. However, our team responded by staying close to customers, matching production to demand, and protecting liquidity. We will continue to focus on building the capabilities necessary for Canaan's next phase."

CFO Jin "James" Cheng added, "We navigated a demanding Q2 market and generated US$31.9 million in total revenue. Despite the market headwinds, we are committed to cost control, liquidity, and operational efficiency. As we enter the second half of 2026, we will continue to balance near-term resilience with opportunities that can strengthen per-share value."

These developments reflect Canaan Inc.’s strategic approach to navigating the complex and volatile cryptocurrency market while continuing to explore new avenues for growth and operational efficiency.