Canaan Inc. posted Q2 2026 revenue of $31.9 million, a 49% decline from the prior quarter and a 68% plunge from the $100.2 million it reported in the same period last year. The culprit is straightforward: Bitcoin fell from roughly $82,000 to $58,000 during the quarter, and when mining becomes less profitable, fewer people buy mining rigs.
The NASDAQ-listed company reported a net loss of $97.6 million for the quarter, compounded by a gross loss of $29.3 million that included a $25.3 million inventory write-down. Its non-GAAP adjusted EBITDA loss came in at $74.9 million.
The numbers behind the pain
The $25.3 million inventory write-down is particularly telling. When a hardware manufacturer marks down its inventory that aggressively, it’s acknowledging that equipment sitting in warehouses is worth meaningfully less than what it cost to produce.
Canaan expects Q3 2026 revenue to land between $11 million and $15 million. That range, if realized, would represent another 50%-plus sequential decline.
Strategic positioning beneath the surface
The company mined 243 BTC during Q2, bringing its total digital asset holdings to 1,915.5 BTC and 3,951.7 ETH as of June 30, 2026.
The company’s self-mining operation expanded meaningfully. Its non-joint-venture mining power reached 10.05 EH/s, reflecting 23.3% year-over-year growth. Canaan achieved this with all-in power costs of approximately $0.043 per kWh.
Cash on hand improved to $66 million from $43 million the prior quarter. The company also continued its share repurchase program, buying back 16.4 million American Depositary Shares for $7.4 million.
For investors watching Canaan’s stock, the Q3 guidance of $11 to $15 million in revenue suggests the company is preparing for at least one more quarter of significant contraction. The $66 million cash position provides runway, and the growing Bitcoin treasury offers upside if prices recover. But with quarterly losses approaching $100 million and revenue guidance pointing further downward, the margin for error is thin.