Bitcoin mining equipment maker Canaan reported second-quarter 2026 revenue below its earlier guidance on Sept. 8, as weaker machine demand put more weight on its cash and crypto treasury.
Canaan disclosed Q2 product revenue of $13.6 million, down sharply from $42.9 million in the prior quarter. Total Q2 revenue reached $31.9 million, falling short of the company’s May forecast range of $35 million to $45 million. The company attributed the decline to lower computing power sold and reduced selling prices amid weaker demand for mining equipment.
The quarter produced a $97.6 million net loss. Noncash charges accounted for $25.3 million in inventory write-downs and purchase-commitment provisions, plus $9.2 million in property and equipment impairment. Mining operations provided a bright spot: Canaan produced 243 BTC and generated $17.7 million from mining in Q2, making a positive cash contribution before depreciation.
Treasury Constraints and Asset Sales
Canaan’s cryptocurrency holdings faced liquidity constraints at quarter-end. As of June 30, the company held 1,915.5 BTC total. Of that amount, 1,117 BTC were pledged for secured term loans, and 100 BTC were transferred to a fixed-term product. The pledged and fixed-term Bitcoin were recorded as $70.9 million in cryptocurrency receivables. The remaining 698.5 BTC in the cryptocurrency assets category were valued at $47 million.
To address liquidity needs, Canaan sold 3,952 ETH and 54 BTC in late August for approximately $13.9 million. The company used those proceeds to fund share repurchases under its existing program. By Sept. 8, Canaan had repurchased approximately 16.4 million American depositary shares for $7.4 million total, with $5.4 million of that spending occurring in late August.
Cash on hand at June 30 was $66 million, compared with $43.5 million at March 31 and $80.8 million at the end of 2025.
Forward Guidance and Operations
Canaan issued Q3 2026 revenue guidance of $11 million to $15 million, signaling continued pressure on equipment sales.
Mining operations in Ethiopia were paused during the quarter and represented nearly 35% of Canaan’s July operating hashrate total. The company did not disclose the reason for the pause or timeline for resumption.
