Revenue nevertheless fell from US$31.9 million in the preceding quarter. Mining equipment sales contributed US$4.8 million, down from US$13.6 million sequentially and US$118.6 million a year earlier. Canaan attributed the decline to weaker demand, lower computing power sales and lower average selling prices. Equipment sold represented 1.0 million TH/s.
Bitcoin mining revenue totaled US$9.5 million, compared with US$17.7 million in the second quarter and US$30.6 million a year earlier. Canaan attributed the sequential decline mainly to lower energized computing power. Production reached 133 $BTC.
The operating business remained loss-making. Gross loss narrowed to US$8.6 million from US$29.3 million sequentially, while operating loss decreased to US$42.9 million from US$69.5 million. Inventory-related write-downs and provisions fell to US$8.2 million from US$25.3 million.
The detailed financial statements recorded cryptocurrency fair-value gains of US$20.1 million and derivatives fair-value gains of US$31.9 million. Chief Financial Officer Jin “James” Cheng distinguished non-cash valuation gains from operating performance.
Canaan’s Q3 2026 results also showed approximately 10 EH/s of installed non-JV mining capacity, with an all-in power cost near US$0.043/kWh. Cheng put mining gross margin before depreciation at approximately 30%.
The crypto treasury held approximately 1,875 $BTC on September 30, 2026. Canaan’s 49% stake in Project ABC, which had 4.87 EH/s installed, generated more than US$1.2 million in cash distributions to the company.
Texas power projects advance alongside infrastructure spending
Canaan’s 1 GW Duval County project in Texas received conditional “Studied Load – Firm” classification through ERCOT’s Batch Zero process. The company described the classification as a grid-connection milestone.
A separate 1 GW project in Zapata County, Texas, remained in early development, with preparations under way for grid-connection studies. Chairman and Chief Executive Officer Nangeng Zhang framed the projects as part of Canaan’s shift toward energy and computing infrastructure, alongside its mining hardware and Bitcoin operations.
In that quarter, Canaan pledged US$50 million in restricted cash as collateral backing a letter of credit tied to long-term infrastructure-related arrangements. It also made approximately US$3.3 million in project prepayments. In October 2026, the company completed a U.S. power-related land purchase for approximately US$1.1 million.
Buyback authorization and December ADS change
Canaan launched an initial US$20 million share repurchase program under a US$100 million authorization approved by its board on November 6, 2026. The broader authorization covers a 12-month period beginning that date.
Zhang said Canaan was selectively monetizing cryptocurrency holdings to finance repurchases while retaining its long-term digital-asset holding strategy. Cash and restricted cash totaled US$72.8 million at the quarter’s end.
The company forecast fourth-quarter revenue of US$18 million to US$22 million. It also plans a 1-for-25 reverse ADS split around December 4, 2026, changing each ADS from representing 15 Class A ordinary shares to 375. The stated objectives are Nasdaq minimum-bid-price compliance and potentially broader institutional participation; proportional ownership remains unchanged apart from fractional-ADS adjustments.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
