Canaan’s third-quarter revenue collapsed to $14.5 million, a 90% drop from the $150.5 million reported in the same period last year. The company sold only 1 million TH/s of computing power, generating just $4.8 million from mining equipment. This figure represents a 96% decline from the $118.6 million recorded a year earlier. Management attributed the sharp contraction to lower computing power sales and weaker average selling prices amid reduced market demand. I see this as a clear signal that hardware margins are no longer sustainable without significant volume support.
Mining operations and balance sheet shifts
The company mined 133 BTC in the latest quarter, producing $9.5 million in revenue compared to $30.6 million in Q3 2025. Despite the operational downturn, Canaan posted $8 million in net income, reversing a $27.7 million loss seen a year prior. This profit stems largely from a $20.1 million fair-value gain on cryptocurrency holdings and another $31.9 million on financial derivatives. CFO Jin "James" Cheng noted that these gains are distinct from underlying operating performance, emphasizing that they do not reflect core business health. The operating loss actually widened to $42.9 million from $23.9 million, which concerns me given the persistent cash burn.
Earlier this year, Canaan acquired Cipher Mining’s 49% stake in three West Texas projects for approximately $40 million. These assets hold a combined installed hashrate of 4.87 EH/s. The firm also secured conditional status for its 1 GW Duval County project, while its Zapata County project remains in early development. With 1,258 BTC pledged for secured loans out of its total holding, leverage is high. The board approved a $20 million share buyback program under a $100 million authorization on Nov. 6. I would skip betting on immediate turnaround; the derivative gains mask a deteriorating operational core that needs serious structural repair before any real recovery can begin.
