Canaan's Q3 revenue plunges 90% to $14.5 million as bitcoin mining hardware sales slump

Bitcoin Bitcoin (BTC) mining hardware maker Canaan Canaan Inc. (CAN) sold 1 million TH/s of computing power in the third quarter, bringing in $4.8 million from mining equipment, down 96% from $118.6 million in the same period last year.

Canaan's overall revenue fell 90% to $14.5 million from $150.5 million a year earlier, according to its financial results published Tuesday. Canaan attributed the drop in hardware revenue to lower computing power sold and weaker average selling prices amid reduced market demand.

When Canaan reported its third-quarter 2025 results last November, it had sold more than 10 EH/s of mining machines and produced 267 BTC, The Block reported at the time. The company mined 133 BTC in the latest quarter, generating mining revenue of $9.5 million, compared to $30.6 million in Q3 2025.

Nevertheless, Canaan posted $8 million in net income for Q3 2026, compared with a $27.7 million loss a year earlier amid a $20.1 million fair-value gain on cryptocurrency holdings and another $31.9 million on financial derivatives. However, its operating loss widened to $42.9 million from $23.9 million.

Canaan Chief Financial Officer Jin "James" Cheng attributed the gains to bitcoin's higher price at the end of September. "We recognize that this non-cash gain is distinct from underlying operating performance," he said in the release.

Texas power projects

Earlier this year, Canaan acquired Cipher Mining's 49% stake in three West Texas bitcoin mining projects for approximately $40 million. The three projects had a combined installed hashrate of 4.87 EH/s at the end of September, according to the firm.

ERCOT classified Canaan's proposed 1 GW Duval County power project as "Studied Load – Firm" on a conditional basis, and further studies and approvals are still pending. Its second 1 GW Texas project, in Zapata County, remains in early development, the firm said.

Of the approximately 1,875 BTC Canaan held at the end of September, 1,258 BTC was pledged for secured loans. The company also announced a $20 million share buyback program under a $100 million authorization approved by its board on Nov. 6.