Canaan sells Bitcoin and Ethereum to fund share buybacks after $97.6 million loss
Company reports big loss and lower revenue
Canaan, a maker of Bitcoin mining hardware, announced a net loss of $97.6 million for the second quarter of 2026. Revenue fell to $31.9 million, missing the $35‑$45 million range it had guided earlier in the year.
Key numbers
- Product revenue dropped to $13.6 million from $42.9 million in the first quarter.
- Cash on hand was $66 million at June 30, up from $43.5 million at the end of March.
- Bitcoin holdings totaled 1,915.5 BTC, but more than half (1,117 BTC) were pledged as loan collateral.
- Late‑August sales of 54 BTC and 3,952 ETH generated about $13.9 million.
- Share repurchases totaled $7.4 million, including $5.4 million spent in late August.
Cash, crypto and loan collateral
The company’s Bitcoin balance includes 1,117 BTC pledged for secured term loans and 100 BTC placed in a fixed‑term product. Those pledged and fixed‑term coins were recorded as receivables worth $70.9 million. The remaining 698.5 BTC were classified as cryptocurrency assets valued at $47 million.
Mining operations
Canaan’s mining division produced 243 BTC and earned $17.7 million in revenue during the quarter. Management said the mining activity contributed positive cash before depreciation, even though the overall business remained loss‑making.
Share buybacks funded by crypto sales
After the quarter ended, Canaan sold part of its crypto holdings—54 BTC and 3,952 ETH—for roughly $13.9 million. A portion of that cash was used to buy back its own shares, increasing the total repurchased shares to about 16.4 million American depositary shares.
Future outlook
The company projects third‑quarter revenue between $11 million and $15 million, indicating continued pressure on its earnings and cash management.
