Canaan’s Q3 Revenue Falls 90% as Operating Loss Widens to $42.9 Million

Canaan’s third-quarter revenue fell 90% year over year to $14.5 million as weaker demand and lower prices for Bitcoin mining machines weighed on sales. Its operating loss widened to $42.9 million from $23.9 million in the year-earlier quarter.

Product revenue dropped 96% to $4.8 million. Canaan sold about 1 million terahashes per second of computing power during the quarter. Its mining operations generated $9.5 million in revenue, down from $30.6 million a year earlier, and produced 133 Bitcoin (BTC), compared with 267.

Canaan recorded $8 million in net income, reversing a $27.7 million loss in the third quarter of 2025. The company booked a $20.1 million fair-value gain on cryptocurrency holdings and a separate $31.9 million gain on financial derivatives.

Canaan Chief Financial Officer James Cheng said the gains mainly reflected Bitcoin’s price increase at the end of September and were distinct from operating performance.

The company is also expanding its Texas mining and power infrastructure. Earlier this year, it acquired a 49% stake in three West Texas Bitcoin mining projects for about $40 million. The projects had a combined installed capacity of 4.87 exahashes per second as of Sept. 30.

The Electric Reliability Council of Texas (ERCOT) conditionally classified Canaan’s 1-gigawatt power project in Duval County as “Studied Load – Firm.” The project still requires further studies and approvals. A separate 1-gigawatt project in Zapata County remains in early development.

Canaan held about 1,875 BTC as of Sept. 30, including 1,258 BTC pledged as loan collateral. The company also launched a $20 million share repurchase program under a $100 million authorization approved by its board Nov. 6.