This report is based on public company disclosures, filings and announcements reviewed by GSN; figures are as stated by the company and have not been independently verified.

Canaan Inc. (Nasdaq: CAN) announced its unaudited financial results for the three months ended June 30, 2026, on September 8, 2026. The Singapore-headquartered company reported total revenue of US$31.9 million for the second quarter. The results reflect a challenging market environment characterized by bitcoin price pressure and seasonal power constraints.

Canaan operates as an innovator in compute and energy infrastructure, primarily engaged in the development and sale of bitcoin mining equipment and the operation of mining facilities. The company also maintains a digital asset treasury. For the second quarter of 2026, Canaan produced 243 bitcoins. The company stated that its mining operations continued to generate a positive cash contribution before depreciation, supported by competitive power economics.

The company reported that its cryptocurrency treasury reached a record level at the end of the quarter. According to the filing, Canaan held 1,915.50 bitcoins and 3,951.70 ether. The company noted that this represents the total number of bitcoins and other cryptocurrencies owned on its balance sheet, excluding bitcoins received as customer deposits.

Financial performance was impacted by significant non-cash charges. Jin Cheng, the chief financial officer of Canaan, stated that reported results were affected by a US$25.3 million inventory write-down, prepayment write-down, and provision for reserve for inventory purchase commitments. Additional charges included a US$9.2 million impairment of property and equipment and an US$18.2 million loss of fair value change in cryptocurrency. These accounting charges resulted from a decrease in cryptocurrency prices during the second quarter.

Product revenue was recorded at US$13.6 million, reflecting softer demand for mining rigs and a lower average selling price for computing power. Mining revenue recorded US$17.7 million amidst bitcoin price pressure and seasonal curtailments. The company kept its all-in power cost at a competitive level of around US$0.04 per kilowatt-hour across its mining operations.

Canaan also provided updates on its operational initiatives. The company advanced a fleet upgrade at Project ABC, where installed hashrate reached 4.85 exahashes per second by the end of July 2026. The company stated it is optimizing its A16 series of mining machines, focusing on cost-effective air-cooled models and high-temperature water-cooled models. Mass-production preparations are underway for new Avalon Home products designed for household heating applications.

Regarding capital allocation, Canaan reported that it repurchased approximately 16.4 million American Depositary Shares for an aggregate of US$7.4 million as of September 8, 2026. The company stated it intends to maintain disciplined inventory levels and preserve financial flexibility as it enters the second half of 2026.

Nangeng Zhang, the chairman and chief executive officer of Canaan, commented that the team responded to market difficulties by staying close to customers and protecting liquidity. The company stated it will continue to explore cost-advantaged sites to support efficient deployment and cash generation. The company also noted further progress on long-term power resources in North America, though it stated it would provide updates when reaching an appropriate stage for disclosure.

For investors, the report highlights the volatility inherent in companies with significant digital asset holdings and mining operations. The substantial non-cash impairments underscore the risk of asset devaluation, while the record treasury and share repurchases indicate management’s focus on balance sheet strength and returning capital to shareholders despite operational headwinds.

Sources