Canaan Q2 Revenue Falls to $31.9 Million on Weak Bitcoin Demand

Canaan Inc. reported second quarter fiscal 2026 revenue of $31.9 million, a sharp decline from $100.2 million in the same period last year and $62.7 million in the first quarter of fiscal 2026. The drop in top-line figures coincided with a net loss of $97.6 million, significantly exceeding the $11.1 million loss recorded in the corresponding quarter of the prior year.

The reduction in revenue was driven by weaker demand for mining equipment amid lower bitcoin prices, which lowered both the volume of computing power sold and average selling prices. Canaan sold 2.5 EH/s of computing power during the quarter. Product revenue fell to $13.6 million from $71.9 million a year earlier, while mining revenue dropped from $28.1 million to $17.7 million.

Despite the revenue contraction, the company's mining segment generated 243 bitcoins and maintained a positive cash contribution before depreciation, supported by favorable power economics. Management highlighted controlled spending, efficient cash management, and a lean inventory position as key operational priorities.

Canaan's digital asset treasury reached a record 1,915.5 BTC and roughly 3,952 ETH as of June 30. However, the change in fair value of financial derivatives resulted in an $8.9 million loss, and cryptocurrency holdings produced a $9.3 million loss for the quarter. This marked a reversal from the same period last year, when the company posted gains of $23.4 million from derivatives and $10.6 million from cryptocurrency holdings.

Net foreign exchange losses totaled $3.0 million, improving from a $4.0 million loss in the first quarter of 2026 but reversing a $0.3 million gain seen in the same quarter of 2025.

Institutional sentiment toward the stock remains weak according to data tracked by Insider Monkey across more than 1,000 hedge funds. By the end of the second quarter of 2026, only six hedge funds held positions, unchanged from the previous quarter. Short interest stood at 8.90%, indicating a moderately high level of speculative bets against the stock.

Invesco is the largest institutional stakeholder, holding 40.4 million shares as of June 30, which represents 5.39% of outstanding shares. Other notable institutional investors include Weiss Asset Management with 5.19% and Galaxy Digital with 1.56% of outstanding shares.

The company expects third-quarter revenue to range from $11 million to $15 million, well below the second-quarter figure, reflecting continued weakness in market conditions and customer demand.