Canaan reported second-quarter 2026 revenue of $31.9 million on September 8, 2026, below its guidance range of $35 million to $45 million. Shares declined 6.31% in premarket trading to $0.337 after closing at $0.36 on September 5, 2026, within a 52-week range of $0.152 to $2.22. The company said it has until January 11, 2027, to regain compliance with Nasdaq minimum bid-price requirements.
Industrial mining equipment generated $12.7 million, representing 2.5 EH/s of computing power at an average selling price of $5.50 per terahash per second, with approximately 10,000 Avalon A15 series units shipped. Home mining equipment contributed $1.0 million, or 3.0% of revenue, from about 1,200 units. Self-mining produced $17.7 million, down 7.7% quarter over quarter and equal to 55% of total revenue. Canaan mined 243 bitcoin in the quarter, down 4% sequentially, including 44 bitcoin in August. Quarter-end installed computing power was 10.1 EH/s, up 23% year over year and down 8% sequentially. Adjusted mining gross margin was 20.5%, and average revenue per bitcoin from self-mining was $72,578.
Cash increased 52% quarter over quarter to $66 million as of June 30, 2026, supported by approximately $54 million from product sales, $15 million from VAT refunds, equity investment distributions and bitcoin-backed financing. Inventory fell to $128.8 million. Operating expenses were $40.1 million, including a $9.2 million impairment on mining machines and $2.7 million in bad debt provisions. Adjusted EBITDA was a loss of $74.9 million, and gross loss was $29.3 million, including a $25 million inventory write-down.
Canaan held 1,868 bitcoin as of August 31, 2026, with a market value of approximately $146 million, down from 1,915 bitcoin at the end of the second quarter, valued at approximately $111 million. Total holdings including receivables had reached 1,915 bitcoin earlier, while self-owned bitcoin stood at 1,218 in the quarter. In August, the company monetized 3,952 ether and 54 bitcoin for $13.9 million, deployed $5.4 million to repurchase 13.6 million ADSs and had repurchased 16.4 million ADSs for $7.4 million year to date under a $30 million authorization. On June 24, 2026, the chief executive and chief financial officer bought 1,065,000 ADSs at an average price of $0.35.
Canaan completed the acquisition of a 49% equity interest in Alborz LLC, Bear LLC and Chief Mountain LLC, which include 120 MW of power capacity and approximately 4.4 EH/s of hashrate, through a non-cash issuance of about 806 million Class A ordinary shares. Project ABC in Alborz, Texas, operated by WindHQ, had 120 MW of installed power capacity and 4.85 EH/s of installed hashrate as of July 31, 2026, and generated about $5 million in cash during the quarter. Power rates were below 3 cents per kilowatt-hour on the ERCOT grid, and cumulative cash received for Project ABC was $8.4 million as of August 31, 2026.
The company said it operated 10 active projects with 10.05 EH/s of operating and installed computing power, plus 0.27 EH/s expected, at an estimated weighted average power cost of $0.043 per kilowatt-hour. The footprint included 4.90 EH/s in the United States, 4.96 EH/s in Ethiopia, where operations were paused, and 0.06 EH/s in Canada, with 0.27 EH/s expected, along with smaller deployments in Malaysia and the Middle East. The North American fleet represented about 49% of total hashrate, with 88.7 MW of installed power capacity and average efficiency of 17.9 J/TH. Canaan guided third-quarter 2026 revenue to $11 million to $15 million and said it expects gigawatt-scale power resource development by year-end 2026.
Bitcoin traded between $60,000 and $81,000 during the quarter, while global network hashrate remained between 900 and 1,000 EH/s. Chief Executive Nangeng Zhang said the quarter remained a difficult environment for the bitcoin mining industry, and Chief Financial Officer James Jin Cheng said financial resilience is a competitive advantage and that the company is focused on improving asset quality and economics from existing energy resources. The product lineup includes Avalon A15 series models, including A15Pro, A15HS, A15HU, A1566I and A1566HA, Avalon Box, Avalon Nano 3S, Avalon Mini 3, AvalonQ and Avalon A16 and A16XP air-cooled miners, with the A16 and A16XP offering up to 300 TH/s at 12.8 J/TH and operating from -5°C to 35°C. In the Nordic hash-to-heat project, 2 MW using 228 Avalon A1566HA units is operational, with an additional 6 MW using 692 units ordered, delivering high-grade hot water at approximately 80°C.
Earlier milestones included self-mining representing 12.2% of revenue in Q3 2024, with 730 self-owned bitcoin; peak inventory of $201.7 million in Q1 2025; wildfire disruptions at the Alborz, Texas facility in May 2025; gross profit of $16.6 million and peak average revenue per bitcoin of $114,485 in Q3 2025; peak revenue of $196.3 million and adjusted mining gross margin of 41.9% in Q4 2025; and an additional 6 MW order for the Nordic district heating provider in March 2026.
