Bitcoin miner Canaan reported a net loss of $88.7 million for the first quarter of 2026. The company blamed falling Bitcoin prices and a significant inventory write-down for the poor results.
Total revenue came in at $62.7 million for the quarter ending March 31. That is a sharp drop from the $196.3 million it recorded in the previous quarter, according to a Tuesday press release.
Revenue breakdown
Industrial mining equipment remained Canaan’s main revenue driver at $39.6 million. But sales in that category tumbled 75% from the prior quarter. Self-mining contributed $19.1 million, and the home mining segment brought in $2.7 million, which more than doubled year-over-year.
Jin (James) Cheng, chief financial officer of Canaan, said in a statement: “Although average Bitcoin prices and hashprice declined significantly quarter-over-quarter, our bitcoin production experienced a comparatively smaller decrease, reflecting the resilience of our mining operations and continued hashrate deployment.”
Inventory write-down hits results
A $25 million inventory write-down weighed on the quarter’s gross loss of $23 million. Loss from operations reached $54.3 million.
Despite the losses, Canaan expanded its self-mining footprint to 11 exahashes per second of installed computing power, a 66% jump from a year earlier. The company held 1,808 Bitcoin on its balance sheet as of March 31, valued at around $121 million.
Acquisition and power deals
During the quarter, Canaan completed the acquisition of Cipher Mining’s 49% stake in three West Texas joint venture projects. Those projects total roughly 4.4 EH/s in hashrate capacity and 120 megawatts of power. The deal was closed through a share issuance rather than cash, giving Canaan access to power rates below three cents per kilowatt-hour on the ERCOT grid.
Looking ahead, Canaan guided second-quarter revenues between $35 million and $45 million, suggesting a further sequential decline.
Market reaction
Canaan shares closed down 3.54% at $0.4827 on Monday. They shed a further 7.71% in pre-market trading to $0.4455, according to Yahoo Finance.
Across the sector, the pain is widespread. Major miners including Riot Platforms, Core Scientific, CleanSpark, and TeraWulf all reported widening losses in Q1. MARA topped the group with a $1.3 billion net loss, roughly $1 billion of it tied to non-cash mark-to-market adjustments on its Bitcoin holdings.
As mining margins compress, a growing number of miners are pivoting toward AI and high-performance computing for alternative revenue. On Monday, HIVE Digital Technologies announced plans to build a 320-megawatt AI data center campus near Toronto, capable of supporting more than 100,000 GPUs at full build-out.
