Canaan reported second-quarter 2026 revenue below its own guidance on Sept. 8, after a $97.6 million quarterly net loss. The Bitcoin-mining-equipment maker then sold part of its crypto holdings in late August to help fund share buybacks, even though more than half its Bitcoin remains pledged as loan collateral.
Revenue misses guidance
Canaan reported revenue of $31.9 million for the second quarter of 2026, short of the $35 million to $45 million range it had forecast in May. Product revenue fell to $13.6 million from $42.9 million in the first quarter, which the company attributed to less computing power sold and lower selling prices amid weaker demand.
Management's outlook points to further pressure: Canaan forecast third-quarter revenue of $11 million to $15 million. A narrower revenue range ahead makes cash on hand, not the crypto treasury, the figure that matters most.
Most Bitcoin is already spoken for
Of Canaan's 1,915.5 BTC total at June 30, 1,117 BTC was pledged for secured term loans and another 100 BTC sat in a fixed-term product, leaving 698.5 BTC in its cryptocurrency assets category. The pledged and fixed-term coins were recorded as cryptocurrency receivables worth $70.9 million at June 30, separately from cryptocurrency assets valued at $47 million. The headline Bitcoin balance therefore cannot be read as an equivalent pool of money available for spending.
Cash still improved: Canaan held $66 million at June 30, up from $43.5 million at March 31, though below the $80.8 million it held at the end of 2025. That gain came alongside the $97.6 million net loss, which included $25.3 million in inventory and prepayment write-downs and $9.2 million in property and equipment impairment — noncash charges that do not measure how much cash the company actually spent.
Late-August sales fund buybacks
Mining still generated revenue: Canaan produced 243 BTC and $17.7 million from mining in the quarter, which management said made a positive cash contribution before depreciation. After quarter-end, Canaan converted 3,952 ETH and 54 BTC into roughly $13.9 million in late August, directing part of that cash toward share repurchases.
As of Sept. 8, the company had bought back about 16.4 million ADS for $7.4 million under its existing program, $5.4 million of which came in late August alone. Those sales prove Canaan can convert crypto to cash, but its June 30 treasury snapshot predates them — so how it splits cash between operations and buybacks now matters more than the headline Bitcoin figure.
Source: CryptoSlate
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