Canaan mining posts $88.7m Q1 net loss

Canaan mining maker posted an $88.7m net loss in Q1 2026 on revenue of $62.7m as Bitcoin prices and hashprice both fell sharply.

Canaan Inc. reported in a May 19 press release that Q1 2026 revenue reached $62.7 million, in line with its February guidance range but down sharply from $196.3 million in Q4 2025.

The company recorded a gross loss of $22.9 million for the quarter, including a $25 million inventory write-down, and a net loss of $88.7 million compared to $86.4 million in the same period a year earlier.

“Despite bitcoin price volatility, compressed hashprice conditions, elevated energy costs, and weather-related disruptions in North America, we delivered total revenue of $62.7 million, which was in line with our guidance,” said Nangeng Zhang, chairman and chief executive of Canaan.

Industrial mining equipment drove $39.6 million of Q1 revenue, though machine sales fell 75% sequentially as the company completed final deliveries under a large-scale North American order.

Canaan mining operations hold amid hardware slump

Self-mining contributed $19.1 million in Q1 revenue, with Canaan producing 257 bitcoin at an average revenue per coin of $61,034. The company’s installed computing power across 10 joint-mining projects reached approximately 11 EH/s, up 10.7% sequentially.

Canaan grew its cryptocurrency treasury to a record 1,807.60 bitcoin and 3,951.53 Ethereum as of March 31.

The company also acquired a 49% interest in ABC Projects in West Texas from Cipher Mining, adding approximately 4.4 EH/s of operational capacity and expanding its energy infrastructure footprint.

As crypto.news reported, Canaan received a second Nasdaq non-compliance notice in January 2026 for trading below the $1 minimum bid price, with a July 13 deadline to regain compliance. The stock fell a further 13.94% to around $0.41 on Tuesday, near its 52-week low.

What Canaan’s Q2 guidance signals for mining hardware

Canaan guided Q2 2026 revenue between $35 million and $45 million, well below the analyst consensus of approximately $96 million. The company said it will continue monitoring global policy developments and market conditions and may revise its outlook as visibility improves.

The weak guidance reflects broader sector pressure. As crypto.news reported in its coverage of American Bitcoin’s Q1 results, miners are navigating simultaneously declining hashprice, higher energy costs, and increasing AI pivot costs.

The Bitcoin price fell 22% in Q1, squeezing margins across the mining hardware supply chain. CFO Jin Cheng noted that $42 million in customer accounts receivable was collected in April, bringing total cash to approximately $85.5 million, providing near-term operational runway while the company awaits market stabilisation.