Bitcoin miner Canaan reported a web lack of $88.7 million for the primary quarter of 2026 as falling Bitcoin (BTC) costs squeezed revenue margins and induced important stock write-downs.
The corporate's whole income for the quarter ended March 31 was $62.7 million, a major lower from $196.3 million within the earlier quarter, in line with a Tuesday press launch.
Though gross sales had been down 75% from the earlier quarter, industrial mining gear remained the corporate's important income driver at $39.6 million. Self-mining contributed $19.1 million and the house mining sector introduced in $2.7 million, with the class greater than doubling year-over-year.
sauce: canaan
“Whereas the common Bitcoin worth and hash worth declined considerably quarter-on-quarter, the decline in our Bitcoin manufacturing was comparatively small, reflecting the resilience of our mining operations and continued hashrate evolution,” mentioned Canaan Chief Monetary Officer Jin (James) Chen.
A $25 million stock write-down weighed on the quarter's whole lack of $23 million, leading to an working lack of $54.3 million.
Canaan’s self-mining hashrate jumps 66%
Canaan has expanded its self-mining footprint to 11 exahashes per second of put in computing energy, a rise of 66% yr over yr. The corporate had 1,808 Bitcoins on its steadiness sheet as of March thirty first, valued at roughly $121 million.
Through the quarter, Canaan additionally accomplished the acquisition of Cipher Mining's 49% stake in three three way partnership tasks in West Texas, with a complete hashrate capability of roughly 4.4 EH/s and 120 megawatts of energy. The deal, which will probably be concluded by the issuance of inventory quite than money, will give Canaan entry to electrical energy charges of lower than 3 cents per kilowatt-hour on the ERCOT energy grid.
Trying ahead, Canaan's second-quarter income was between $35 million and $45 million, then declined additional.
Canaan inventory closed 3.54% decrease at $0.4827 on Monday, and was down one other 7.71% at $0.4455 in pre-market buying and selling, in line with Yahoo Finance.
Main miners report losses within the first quarter
Throughout the sector, main miners akin to Riot Platforms, Core Scientific, CleanSpark, and TeraWulf all reported greater losses within the first quarter. MARA led the group with a web lack of $1.3 billion, roughly $1 billion of which was associated to non-cash mark-to-market changes to its Bitcoin holdings.
As mining margins shrink, extra miners are turning to AI and high-performance computing as various sources of income. On Monday, HIVE Digital Applied sciences introduced plans to construct a 320-megawatt AI information heart campus close to Toronto that may help greater than 100,000 GPUs when totally constructed out.
