Bitcoin mining company Canaan Inc. reported a net loss of $88.7 million for Q1 2026, representing an increase from the $86.4 million loss recorded in the same period of 2025. According to latest reports, the company's total revenues came to $62.7 million, which fell sharply from $196.3 million in Q4 2025 and $82.8 million in Q1 2025. The mining equipment industry accounted for $39.6 million in earnings, but this segment recorded the largest decline of 75% compared to the previous quarter. The company also recorded a $25 million inventory write-down during the period, resulting in a net loss of $23 million and operational losses of $54.3 million. Despite challenges such as bitcoin price volatility and high energy costs, CEO Nangeng Zhang noted that revenue was in line with guidance.
Despite challenging market conditions, Canaan Inc. produced 257 Bitcoins during Q1 2026, bringing its total cryptocurrency treasury to 1,808 BTC valued at $121 million by March 31, 2026. The company's processing capacity increased by 10.7% sequentially, reaching approximately 11 EH/s across ten joint mining projects. Mining revenues for the quarter totaled $19.1 million from self-mining operations and $2.7 million from home mining, compared to $30.4 million in Q4 2025 and $24.3 million in Q1 2025. The hash rate for self-mining by the firm rose from 6.6 EH/s to 11 EH/s in one year, demonstrating the company's ability to maintain and improve mining capabilities despite market headwinds. The company achieved an average revenue per coin of $61,034 during the quarter.
The company's performance was significantly affected by broader cryptocurrency market conditions, with the world's cryptocurrency market value falling from $2.96 trillion to $2.30 trillion during Q1 2026. According to latest reports, the cryptocurrency fear and greed index remained in the 'Fear' and 'Extreme Fear' zones for most of the period, with only brief exceptions when the market reached neutral levels. Bitcoin miner revenue specifically declined from $1.804 million to $1.8 million during the quarter, contributing to the overall financial pressure on mining operations. The company noted that despite falling costs and rewards associated with Bitcoin mining, there was no substantial reduction in mining activities due to consistent operations and improved computing power.
Despite the challenging quarter, Canaan Inc. made strategic moves to strengthen its mining operations. The company acquired a 49% stake in ABC Projects in West Texas, adding 4.4 EH/s to its operational capacity and providing lower power costs of less than three cents per kilowatt hour. CFO Jin Cheng noted that $42 million in customer receivables were collected in April, bringing total cash to $85.5 million, sufficient for near-term operations. However, the company faces ongoing market pressures, with second-quarter revenue outlook of $35 million–$45 million below analyst expectations. The stock price fell 13.94% to $0.41, nearing its 52-week low, amid a second Nasdaq non-compliance notice, reflecting broader industry challenges with other major Bitcoin mining companies also recording greater losses during the same period.
