Canaan posts $88.7M Q1 loss as Bitcoin slide cuts revenue

Canaan reported an $88.7 million net loss for the quarter ended March 31, 2026, as a drop in Bitcoin prices and a $25 million inventory write-down pushed total revenue down to $62.7 million from $196.3 million in the prior quarter, the company reported.

Industrial mining equipment sales were the largest revenue source at $39.6 million, about 75% lower than the previous quarter. Self-mining generated $19.1 million, and the home mining segment brought in $2.7 million, more than double year-on-year. The $25 million write-down resulted in a gross loss of $23 million and a loss from operations of $54.3 million.

In the earnings release, Jin (James) Cheng, Canaan’s chief financial officer, noted that average Bitcoin prices and hashprice fell sharply quarter-over-quarter, while bitcoin production declined by a smaller amount, pointing to continued hashrate deployment in the company’s mining operations.

Canaan expanded its self-mining capacity to 11 exahashes per second of installed computing power, a 66% increase from a year earlier. The company held 1,808 Bitcoin on its balance sheet as of March 31, with a carrying value of about $121 million.

During the quarter Canaan completed the acquisition of Cipher Mining’s 49% stake in three West Texas joint-venture projects, adding roughly 4.4 EH/s of hashrate capacity and 120 megawatts of power. The transaction closed through a share issuance and provides access to power rates below three cents per kilowatt-hour on the ERCOT grid.

Canaan guided second-quarter revenue to a range of $35 million to $45 million, signaling a further sequential decline in sales. The company’s shares fell following the results.

Other publicly traded miners reported widening losses for the period. Several firms in the sector reported large net losses, including one company that recorded about $1 billion of noncash mark-to-market adjustments on its Bitcoin holdings. Some mining companies are expanding into artificial intelligence and high-performance computing projects as equipment demand and mining margins remain under pressure.