Singapore – September 11, 2026 -- Canaan Inc. (NASDAQ: CAN) reported unaudited second-quarter 2026 total revenue of US$31.9 million, down 49% from US$62.7 million in Q1 2026 and 68% below the US$100.2 million recorded in Q2 2025, as bitcoin price weakness and seasonal power constraints hit mining-rig demand.
Digital asset treasury climbs to a record 1,915 BTC and 3,952 ETH
Canaan's cryptocurrency treasury reached its highest level to date at quarter-end, even as the company posted a gross loss of US$29.3 million, widening from a US$22.9 million gross loss in Q1 2026 and reversing a gross profit of US$9.3 thousand in Q2 2025. The company mined 243 bitcoins during the quarter and sold 2.5 EH/s of computing power.
Product revenue collapses to $13.6 million on weaker rig demand and pricing
Products revenue fell to US$13.6 million from US$42.9 million in Q1 2026 and US$71.9 million a year earlier, driven by lower computing-power volumes and average selling prices amid tightening market demand. Mining revenue came in at US$17.7 million, down from US$19.1 million in Q1 2026 and US$28.1 million in Q2 2025, reflecting declining average bitcoin prices and curtailments.
Non-cash charges total $52.7 million, dragging on reported results
Chief Financial Officer Jin "James" Cheng said the quarter's reported results were weighed down by a US$25.3 million inventory write-down and provision for inventory purchase commitments, a US$9.2 million impairment of property and equipment, and an US$18.2 million fair-value loss on cryptocurrency holdings — all stemming from the crypto price decline. Total operating expenses rose to US$40.1 million from US$31.4 million in Q1 2026, while all-in power cost across mining operations held at roughly US$0.04 per kWh.
Canaan deploys $7.4 million to repurchase 16.4 million ADSs
The company has spent an aggregate US$7.4 million to buy back approximately 16.4 million ADSs under its existing repurchase program as of September 8, 2026, alongside continued personal share purchases by management. Cheng said the company is applying a more active capital-allocation framework that monetizes part of its digital asset treasury to fund the buybacks, arguing current equity valuation understates the combined value of its treasury, cash liquidity and ongoing mining output.
Project ABC fleet upgrade lifts installed hashrate to 4.85 EH/s
Chairman and CEO Nangeng Zhang said the company advanced a fleet upgrade at Project ABC with its partner, reaching 4.85 EH/s of installed hashrate by the end of July. Canaan is also developing Avalon Home products for household heating applications, with mass-production preparations underway ahead of the winter heating season, and continuing work on long-term power resources in North America as part of its shift toward compute-plus-energy infrastructure.
R&D and G&A expenses ease year-over-year on lower staff and professional costs
Research and development expenses were US$14.9 million in Q2 2026, down from US$16.4 million a year earlier on lower staff costs, partially offset by higher R&D expenditure. General and administrative expenses were US$15.1 million, down from US$16.4 million in Q2 2025 due to lower professional service fees and share-based compensation, partly offset by a US$2.6 million increase in credit loss expense.