Canaan reports $88.7 million net loss as Bitcoin prices cut revenue

Canaan Inc., a major manufacturer of Bitcoin mining hardware, reported a significant net loss of $88.7 million for the first quarter of 2026, as a sustained drop in cryptocurrency prices severely impacted demand for its equipment. The company’s revenue fell sharply to $62.7 million, a 68% decline from the previous quarter.

The results, which triggered a nearly 10% drop in the company’s share price, highlight the acute vulnerability of mining hardware firms to Bitcoin’s market cycles. Revenue from the company’s core product segment, which includes mining machines, fell to $42.9 million. The company attributed the weak performance to a decrease in total computing power sold and a lower average selling price for its machines, which are sensitive to Bitcoin’s value.

Chief Executive Officer Nangeng Zhang acknowledged the challenging operating environment, citing Bitcoin price volatility, compressed mining profitability, elevated energy costs, and weather-related disruptions to mining operations in North America. He stated that geopolitical uncertainties and fluctuating energy prices have contributed to a cautious industry climate.

The financial loss was amplified by a substantial $25...