Canaan Reports Q2 Loss, Sells Crypto to Fund Share Buybacks

Canaan, a leading Bitcoin mining‑equipment manufacturer, posted a second‑quarter 2026 net loss of $97.6 million and revenue below its prior guidance. The company sold part of its cryptocurrency holdings to fund share buybacks.

Revenue and Guidance Miss

Quarterly revenue was $31.9 million, missing the $35 million to $45 million range forecast in May. Product revenue declined sharply to $13.6 million from $42.9 million in Q1, driven by weaker demand and lower selling prices.

Cash, Treasury and Crypto Holdings

At June 30, Canaan held 1,915.5 BTC, of which 1,117 BTC were pledged as collateral for secured term loans and 100 BTC were allocated to a fixed‑term product. The remaining 698.5 BTC were classified as cryptocurrency assets. The pledged and fixed‑term BTC were recorded as cryptocurrency receivables worth $70.9 million, while the unpledged assets were valued at $47 million.

Cash balances rose to $66 million from $43.5 million at the end of Q1, though they remained below the $80.8 million held at the end of 2025.

Mining Operations

Canaan’s mining segment produced 243 BTC and generated $17.7 million in revenue, contributing positive cash flow before depreciation.

Crypto Sales and Share Repurchases

In late August, the company sold 3,952 ETH and 54 BTC for approximately $13.9 million. Proceeds were partially used to repurchase shares, bringing total buybacks to about 16.4 million American depositary shares for $7.4 million, including $5.4 million spent in late August.

Outlook

Canaan forecast third‑quarter revenue of $11 million to $15 million, indicating continued pressure on both its equipment sales and cash allocation decisions.