Bitcoin mining machine manufacturer Canaan Technology (Canaan) announced its financial report for the third quarter of 2026. Affected by the cooling demand for Bitcoin mining equipment and falling sales prices, mining machine hardware revenue plummeted 96% compared with the same period last year, and the company's overall revenue also shrank significantly by 90%. Despite the interest in cryptocurrency position evaluation, Canaan Technology still faces the problem of expanding operating losses this quarter.
Canaan Technology’s Q3 revenue plummets 90%
According to the unaudited financial report released by Canaan Technology on Tuesday, total revenue in the third quarter was US$14.5 million, a 90% decrease from US$150.5 million in the same period last year. Among them, mining equipment revenue was only US$4.8 million, a year-on-year decrease of 96%, mainly due to the decrease in computing power sales and the decline in average selling prices caused by weak market demand.
The total computing power of the mining machines sold by Canaan Technology this quarter is about 1 EH/s (1 million TH/s), which shows a significant shrinkage compared with the sales scale of more than 10 EH/s in the same period last year. In the third quarter of last year, the company also produced 267 Bitcoins, but mining output dropped to 133 in the same period this year.
In terms of mining business, Canaan Technology contributed US$9.5 million in revenue in the third quarter, down from US$30.6 million in the same period last year, reflecting that mining revenue is also affected by changes in market environment and output.
Cryptocurrency evaluation benefits, operating losses still expand
Despite the sharp decline in revenue, Canaan Technology still recorded a net profit of US$8 million in the third quarter, an improvement from the net loss of US$27.7 million in the same period last year.
However, this profit mainly comes from non-cash evaluation benefits rather than the strengthening of core business. The financial report shows that the company’s cryptocurrency positions generated a fair value gain of US$20.1 million this quarter, and financial derivatives brought another US$31.9 million in income.
James Cheng, chief financial officer of Canaan Technology, said that the related gains mainly reflected the increase in Bitcoin prices at the end of September, but also emphasized that such non-cash gains are different from the company's actual operating performance. On the other hand, the company's third-quarter operating loss widened to US$42.9 million, higher than the US$23.9 million in the same period last year, indicating that weak mining machine sales and mining business still put pressure on the industry.
Increased investment in mining and power layout in Texas, holding 1,875 Bitcoins
As the demand for mining machines slows down, Canaan Technology continues to expand its energy and mining infrastructure layout in Texas, USA.
Earlier this year, Canaan Technology acquired Cipher Mining’s 49% stake in three Bitcoin mining projects in West Texas for approximately US$40 million. As of the end of September, the total installed computing power of the three projects reached 4.87 EH/s.
In addition, Canaan Technology's 1 GW power project in Duval County, Texas, has been conditionally listed as "Studied Load – Firm" by the Electric Reliability Council of Texas (ERCOT), but it still needs to pass further research and approval. Another 1 GW project in Zapata County is still in the early stages of development.
In terms of assets, Canaan Technology held approximately 1,875 Bitcoins as of the end of September, of which 1,258 have been used to secure loans. In addition, the company also announced the launch of a US$20 million treasury stock repurchase plan, which is subject to the US$100 million stock repurchase authorization approved by the board of directors on November 6.
Overall, Canaan Technology's third-quarter financial report reflects another pressure faced by the Bitcoin mining industry: even if companies continue to invest in computing power and energy infrastructure, declining demand and selling prices for mining machines may still significantly compress equipment manufacturers' revenue, and book gains brought by rising cryptocurrency prices cannot directly improve core operating performance.
