In its latest financial disclosure, Bitcoin mining equipment manufacturer Canaan Inc. revealed a net loss of $88.7 million for the first quarter of 2026, with revenue totaling $62.7 million. This performance aligns with the company’s earlier projections but reflects significant challenges posed by declining Bitcoin valuations and reduced mining profitability.
The company attributed the substantial loss to a $25 million inventory write-down, which contributed to a gross loss of $22.9 million for the quarter. Despite this, the net loss was only slightly worse than the $86.4 million deficit recorded in the same period last year.
According to CEO Nangeng Zhang, the results came in as expected despite headwinds such as Bitcoin price fluctuations, compressed hashprice, higher energy costs, and weather disruptions in North America. The firm’s industrial mining equipment segment generated $39.6 million in revenue, marking a 75% decline from the previous quarter after fulfilling a major North American order.
On the self-mining front, Canaan produced 257 Bitcoin, yielding $19.1 million in revenue at an average of $61,034 per coin. The company’s computing power across joint-mining projects rose 10.7% sequentially to approximately 11 EH/s. Its cryptocurrency holdings reached a record 1,807.60 Bitcoin and 3,951.53 Ethereum by the end of March.
Canaan also expanded its energy infrastructure by acquiring a 49% stake in ABC Projects in West Texas from Cipher Mining, adding about 4.4 EH/s of operational capacity. However, the company faces a potential Nasdaq delisting after its stock fell below $1, trading near $0.41.
Looking ahead, Canaan expects Q2 2026 revenue between $35 million and $45 million, significantly below analyst estimates of $96 million. CFO Jin Cheng noted that $42 million in customer receivables were collected in April, boosting cash reserves to about $85.5 million to navigate the downturn.