Shares in the Bitcoin mining hardware manufacturer Canaan surged on Tuesday after the company reported its third-quarter revenue more than doubled compared to the previous year. The impressive growth was fueled by a high demand for mining equipment as the digital asset market showed renewed strength.

Canaan announced total Q3 revenues of $150.5 million, a 104% increase from the same period last year, attributing the performance to a “substantial volume of new orders.” Sales of its mining equipment were the primary driver, accounting for $118.6 million of the total.

During the company’s earnings call, Chief Financial Officer James Jin Cheng noted that a significant number of sales came from clients in the United States. He explained that these customers “started actively placing sizable and repeating orders,” with sales in North America contributing 31% of the quarter’s total revenue.

The trend of strong earnings extends across the mining sector. HIVE Digital recently reported a 285% increase in earnings, while BitFuFu also doubled its Q3 revenue, benefiting from demand for cloud mining as operators sought to capitalize on Bitcoin’s rising price.

Market Performance and Company Strategy

Following the earnings announcement, Canaan’s stock (CAN) closed trading on Tuesday up nearly 21% at $1.03. However, despite the positive quarter, the stock is still down nearly 50% for the year. The broader downturn reflects an industry-wide shift where some Bitcoin miners have begun pivoting to power artificial intelligence (AI) as mining costs and difficulty have increased.

Canaan’s own mining operations also saw significant growth, generating $30 million in revenue during the quarter—a 241% increase year-over-year. The company mined 267 Bitcoin, producing an average revenue of $114,485 per coin, and increased its total holdings to 1,610 Bitcoin by the end of October.

CEO Nangeng Zhang addressed the industry’s move toward AI, acknowledging that some competitors are reducing their mining operations due to balance sheet pressures. However, he positioned Bitcoin mining as the most practical way to generate immediate revenue, arguing that the large-scale deployment of AI infrastructure is a long-term project.

“At this stage, deploying more Bitcoin miners is still the best way to allocate energy today and generate revenues,” Zhang told investors. He emphasized that this approach allows companies to earn revenue now rather than “waiting for another one or two or three years” for AI facilities to be built.