Canaan Inc. reported second-quarter revenue of $31.9 million on Sept. 8, down from $62.7 million in the preceding quarter and $100.2 million a year earlier. The Bitcoin-mining equipment maker also posted a $97.6 million net loss as weaker machine demand, lower bitcoin prices and non-cash charges weighed on the period.
The company’s unaudited financial results cover the three months ended June 30. Product revenue was $13.6 million and mining revenue was $17.7 million, while other revenue contributed $600,000. Canaan attributed the product decline to lower computing power sold and a reduced average selling price.
Gross loss reached $29.3 million
Canaan recorded $61.2 million in cost of revenue, nearly twice its reported sales, producing a $29.3 million gross loss. The result compared with a $22.9 million gross loss in the first quarter and a small gross profit in the same period of 2025.
Costs included a $25.3 million inventory and prepayment write-down plus provisions tied to inventory purchase commitments. Canaan also recognized a $9.2 million impairment on property, equipment and software. Its loss from operations reached $69.5 million, while cryptocurrency and financial-derivative fair-value changes generated separate losses of $9.3 million and $8.9 million.
Canaan mined 243 bitcoin during the quarter
The company said its mining operations produced 243 BTC in the quarter. At June 30, it reported 1,915.5 BTC in total, including 698.5 BTC classified as cryptocurrency assets and 1,217 BTC recorded as receivables because the coins were pledged for secured loans or transferred to a fixed-term product.
Canaan previously introduced its Avalon A15 hardware as part of its mining-machine lineup. BlockchainReporter covered the Avalon A1566 model and its efficiency specifications when the series launched. In the latest results, management said it continued optimizing A16 products while preparing additional home-mining equipment for mass production.
Treasury sales helped fund share repurchases
After the quarter ended, Canaan sold 3,952 ETH and 54 BTC in late August, generating approximately $13.9 million in cash. The company said part of those proceeds supported share repurchases. By Sept. 8, it had bought back about 16.4 million American depositary shares for $7.4 million under its existing program.
The company characterized those asset sales as capital allocation rather than a change to its long-term digital-asset strategy. For the third quarter, Canaan forecast revenue of $11 million to $15 million, while cautioning that the outlook depends on near-term market conditions and customer demand.