Canaan shares took a significant hit on Tuesday, falling more than 13% after the Bitcoin miner and hardware maker posted its second straight quarterly loss. The company, based in Singapore, reported a first-quarter net loss of $88.7 million, widening from an $85 million loss in the previous quarter. Its stock price dropped to $0.418, nearing an all-time low of $0.38 set just last month, according to Yahoo Finance.
Middle East Conflict Adds to Miner Woes
During the company’s earnings call, CEO Nangeng Zhang pointed to several factors clouding the outlook. He said that mining Bitcoin became less profitable as the digital asset’s price slid. But he also flagged a new concern: the conflict between the U.S. and Iran. “Uncertainties related to the Middle East situation, energy prices, global liquidity and the policies continue to keep the industry in a cautious environment,” Zhang said. “For us, a company going through a transition period, this kind of environment created a lot of pressure.”
Revenue Drops as Company Shifts Focus
Canaan disclosed $62.7 million in revenue for the quarter, contracting 68% from $196.3 million in the quarter before. Most sales came from its product arm, which generated $42.9 million, as the firm completed deliveries on a major U.S. order. The company has begun prioritizing a shift toward computing infrastructure, mirroring competitors like IREN and Hive Digital Technologies that have tapped into the AI boom by meeting tech firms’ growing power needs.
Zhang said the company moved to strengthen its “survivability” during the quarter. Staffing costs decreased by $2.1 million sequentially, while overall operating expenses declined to $31.4 million from $38.2 million.
Bitcoin Mining and Treasury Update
Canaan mined 257 Bitcoin in the three months ending March 31, but weather-related energy curtailments in North America affected that performance. The company’s treasury grew to 1,807 Bitcoin and 3,951 Ethereum, with a combined value of about $146 million.
During the quarter, Canaan also acquired a 49% interest in Cipher Mining’s ABC Projects in West Texas, expanding its access to American power infrastructure. Zhang said the move was tied to exploring opportunities related to AI and high-performance computing, offering the firm what he called “strategic flexibilities.”
