Canaan reports sharp revenue decline as mining hardware sales weaken

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Canaan revenue decline Q3

Highlights

Canaan's Q3 2026 revenue plunges 90% to $14.5 million as mining equipment sales fall 96% to $4.8 million with lower TH/s sold and ASPs.
Company posts $8 million net income in Q3 2026, reversing a $27.7 million loss last year, driven by $20.1 million fair-value and $31.9 million derivatives gains.
Canaan acquires Cipher Mining’s 49% stakes in three West Texas mining projects for about $40 million and announces a $20 million share buyback under $100 million authorization.

Quarter results and operating performance

As reported by The Block, Canaan says third-quarter revenue falls 90% to $14.5 million from $150.5 million a year earlier, as mining equipment revenue drops 96% to $4.8 million from $118.6 million. The company sells 1 million TH/s of computing power in the quarter and attributes the decline in hardware revenue to lower computing power sold and weaker average selling prices amid softer market demand.

Mining revenue reaches $9.5 million after Canaan mines 133 BTC in the latest quarter, down from $30.6 million in Q3 2025. Operating loss widens to $42.9 million from $23.9 million, indicating that the company’s core business remains under strain despite the profit at the net income level.

Canaan posts net income of $8 million in Q3 2026, compared with a $27.7 million loss a year earlier, supported by a $20.1 million fair-value gain on cryptocurrency holdings and a further $31.9 million gain on financial derivatives. Chief Financial Officer Jin "James" Cheng says the gains reflect bitcoin’s higher price at the end of September and notes that the non-cash benefit is separate from underlying operating performance.

Texas expansion and balance sheet position

Earlier in 2026, Canaan acquires Cipher Mining’s 49% stake in three West Texas bitcoin mining projects for about $40 million. The three sites have a combined installed hashrate of 4.87 EH/s at the end of September, adding to the company’s mining capacity as it expands in the U.S. market.

ERCOT classifies Canaan’s proposed 1 GW Duval County power project as “Studied Load – Firm” on a conditional basis, while further studies and approvals remain pending. A second 1 GW Texas project in Zapata County stays in early development, showing that a significant part of the company’s growth plan is still at a preliminary stage.

At the end of September, Canaan holds about 1,875 BTC, of which 1,258 BTC is pledged for secured loans. The company also announces a $20 million share buyback program under a broader $100 million authorization approved by its board on Nov. 6.

Earlier, we discussed cybersecurity startup funding reaching $6.8 billion in Q3 2026 despite fewer deals.

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