TLDR
- Canaan reported a net loss of $88.7 million in Q1 2026.
- Quarterly revenue fell to $62.7 million from $196.3 million in the prior quarter.
- A $25 million inventory write-down contributed to a gross loss of $23 million.
- Canaan increased self-mining hashrate to 11 EH/s and held 1,808 Bitcoin at quarter end.
- The company forecast Q2 revenue of $35 million to $45 million as mining conditions remain weak.
Bitcoin miner Canaan reported a net loss of $88.7 million for the first quarter of 2026, as lower Bitcoin prices and weaker mining economics weighed on revenue and margins. The company said total revenue for the quarter ended March 31 reached $62.7 million, down from $196.3 million in the prior quarter.
The results reflect a difficult start to the year for publicly traded Bitcoin mining companies. Across the sector, miners faced lower Bitcoin prices, rising network difficulty, and weaker hashprice during the quarter. Those conditions reduced returns from self-mining operations and also affected equipment sales.
Canaan said industrial mining equipment remained its main source of revenue, generating $39.6 million during the quarter. That figure was down 75% from the previous quarter. Self-mining contributed $19.1 million, while the home mining business generated $2.7 million. The home mining segment recorded year-on-year growth, even as the company’s total revenue moved lower on a quarterly basis.
Revenue Falls as Inventory Charges Weigh on Results
A $25 million inventory write-down added pressure to Canaan’s quarterly figures. The company posted a gross loss of $23 million and a loss from operations of $54.3 million. The inventory charge was one of the largest factors behind the weaker earnings outcome.
Canaan Chief Financial Officer Jin Cheng said average Bitcoin prices and hashprice both declined sharply from the previous quarter. He added that the company’s Bitcoin production fell by a smaller rate than those market indicators, which the company linked to continued deployment of hashrate and operating resilience in its mining business.
The quarter showed a gap between Canaan’s operating expansion and the market conditions facing miners. While the company continued to build out infrastructure and computing power, the pricing environment for Bitcoin mining remained weak. That gap has become a central issue for the sector in early 2026.
Canaan expanded its self-mining hashrate to 11 exahashes per second of installed computing power, up 66% from a year earlier. The company also reported holding 1,808 Bitcoin on its balance sheet as of March 31. Based on the values cited in the release, those holdings were worth about $121 million at quarter end.
Texas Expansion Adds Power Capacity to Mining Portfolio
During the quarter, Canaan completed the purchase of Cipher Mining’s 49% stake in three joint venture projects in West Texas. The projects total about 4.4 EH/s in hashrate capacity and 120 megawatts of power. The transaction was completed through a share issuance rather than a cash payment.
The company said the deal gives it access to power prices below three cents per kilowatt-hour on the ERCOT grid. Lower energy costs remain a priority for Bitcoin miners as they work to manage reduced margins following the latest period of price weakness and network competition.
Looking ahead, Canaan guided for second-quarter revenue in a range of $35 million to $45 million. That forecast points to another sequential decline from the first quarter. The outlook suggests that management expects difficult market conditions to continue in the near term.
Canaan’s stock also moved lower following the results period. Shares closed down 3.54% at $0.4827 on Monday and fell another 7.71% in pre-market trading to $0.4455, according to Yahoo Finance data.
Bitcoin Mining Sector Faces Broad Q1 Losses
The pressure seen in Canaan’s results was not limited to one company. Several publicly traded miners reported wider losses in the first quarter, including Riot Platforms, Core Scientific, CleanSpark and Hut 8. MARA posted the largest loss in the group at about $1.3 billion, with about $1 billion tied to non-cash mark-to-market changes on its Bitcoin holdings.
According to CoinShares data, network hashprice fell to cyclical lows of about $29 to $33 per PH/s per day during the quarter. With the average breakeven level estimated at around $35 per PH/s per day, about 15% to 20% of the global mining fleet operated below cost during that period.
As a result, more miners have begun looking beyond Bitcoin production for revenue. Some companies are adding artificial intelligence and high-performance computing projects to their long-term plans. HIVE Digital Technologies said this week that it plans to build a 320-megawatt AI data center campus near Toronto that could support more than 100,000 GPUs when fully built.
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