TL;DR:
- Canaan recorded a net loss of $88.7 million in Q1 2026, reporting total revenues of $62.7 million.
- A drop in Bitcoin’s price and a $25 million inventory write-down dragged equipment sales down 75% from the previous quarter.
- The company projects revenues of between $35 and $45 million for Q2, implying another sequential contraction.
Canaan, a manufacturer of Bitcoin mining equipment, reported a net loss of $88.7 million in the first quarter of 2026. The decline in BTC’s price compressed operating margins and forced the company to record a $25 million inventory write-down, according to a press release published recently.
Total revenues for the quarter ended March 31 reached $62.7 million, compared to $196.3 million in the prior quarter. Sales of industrial mining equipment, the primary revenue source at $39.6 million, plunged 75% from the previous period. The company’s own mining operations contributed approximately $19.1 million, while the home mining segment added $2.7 million, a category that doubled its year-over-year result.
The gross loss for the quarter was $23 million, and the operating loss totaled $54.3 million. Jin (James) Cheng, Chief Financial Officer of Canaan, acknowledged the impact of the decline in Bitcoin’s price and hashprice, while noting that the company’s production held up better than those market variables.
Canaan’s Self-Mining Falls Short of Offsetting the Damage
Canaan expanded its self-mining capacity to 11 exahashes per second, a 66% year-over-year increase. At the close of the quarter, the company held approximately 1,808 Bitcoin on its balance sheet, valued at roughly $121 million.
During the first quarter, the company also completed the acquisition of the 49% stake that Cipher Mining held in three joint venture projects in western Texas, with a combined capacity of 4.4 EH/s and 120 megawatts of power. The transaction was closed through a share issuance, with no cash disbursements, and grants Canaan access to electricity rates below three cents per kilowatt-hour on the ERCOT grid.
For the second quarter, the company projected revenues of between $35 and $45 million, implying another sequential contraction. Canaan’s shares closed Monday with a decline of 3.54% to $0.4827, and fell an additional 7.71% in pre-market trading on Tuesday.
A Widespread Decline Across Mining Companies
The negative results were not a phenomenon exclusive to Canaan. Riot Platforms, Core Scientific, CleanSpark, and TeraWulf also reported growing losses in the first quarter. MARA recorded a net loss of $1.3 billion, of which approximately $1 billion corresponded to non-cash accounting adjustments on its Bitcoin holdings.
