Canaan Inc. (NASDAQ: CAN) swung to $8.0 million of third-quarter internet earnings on a $51.9 million fair-value achieve in its bitcoin holdings and derivatives, the mining-rig maker mentioned Tuesday, at the same time as machine gross sales collapsed 96%.
The corporate filed the unaudited outcomes Tuesday in a 6-Okay with the Securities and Alternate Fee. Complete income fell to $14.5 million from $150.5 million a 12 months earlier, together with $4.8 million from product gross sales and $9.5 million from mining. Canaan bought 1.0 million terahashes per second of computing energy and mined 133 bitcoin.
The revenue didn’t come from the enterprise. Canaan posted an $8.6 million gross loss and a $42.9 million working loss. Chief monetary officer Jin “James” Cheng mentioned a restoration in bitcoin costs towards quarter-end generated the $51.9 million fair-value achieve and referred to as it “distinct from underlying working efficiency.”
The $51.9 million is the sum of a $20.1 million achieve on cryptocurrency and a $31.9 million achieve on monetary derivatives. Canaan additionally reported $22.4 million of non-GAAP adjusted EBITDA, a determine that also contains these positive aspects. Strip them out and adjusted EBITDA would have been a lack of about $29.5 million.
Nangeng Zhang, Canaan’s chairman and chief government officer, pointed to “continued weak spot in bitcoin mining tools demand and intense trade pricing competitors.” Merchandise income dropped from $13.6 million within the second quarter and from $118.6 million in the identical interval of 2025. The corporate blamed decrease volumes and a decrease common promoting value.
The treasury carries the quarter
Canaan took $8.2 million of inventory-related write-downs, down from $25.3 million within the second quarter. Mining operations posted a gross margin of about 30% earlier than depreciation, with an all-in energy value of about $0.043 per kilowatt-hour and roughly 10 exahashes per second of put in capability outdoors joint ventures.
The corporate held 1,875.5 bitcoin as of Sept. 30. Of that, 517.5 cash had been owned outright, 1,258 had been pledged for secured time period loans and 100 sat in a fixed-term product. It booked $43.7 million of cryptocurrency property and $114.2 million of cryptocurrency receivables.
The stack is down about 40 bitcoin from the 1,915.5 Canaan reported on the finish of the second quarter, even after the corporate mined 133 within the interval, implying it moved roughly 173 bitcoin off the treasury. Zhang mentioned Canaan is “selectively monetizing cryptocurrency holdings to fund share repurchases.”
On Nov. 6, the board accepted a brand new $100 million share repurchase authorization over 12 months and launched an preliminary $20 million program underneath that cap.
A 2-gigawatt Texas wager, and a reverse cut up
Canaan is attempting to recast itself round energy and compute infrastructure. Its 1-gigawatt venture in Duval County, Texas, obtained a conditional “Studied Load – Agency” classification underneath ERCOT’s Batch Zero course of, a grid-connection step Zhang mentioned stays “topic to additional research and approvals.” A second 1-gigawatt venture in Zapata County is in early-stage improvement.
To help these plans, Canaan put aside $50 million of restricted money as collateral for a letter of credit score tied to infrastructure contracts and made about $3.3 million of venture prepayments. In October it purchased a parcel of U.S. land for about $1.1 million. Money ended Sept. 30 at $72.8 million, $50 million of it restricted, leaving $22.8 million unrestricted.
Canaan additionally plans a 1-for-25 reverse ADS cut up, efficient on or about Dec. 4, altering every ADS from 15 Class A bizarre shares to 375. The transfer is supposed to assist the corporate regain compliance with Nasdaq’s minimal bid value requirement.
For the fourth quarter, Canaan expects income of $18 million to $22 million.
The shift towards energy and compute places Canaan in the identical lane as different public bitcoin miners. MARA bought 13,597 bitcoin to fund AI infrastructure, and Hyperscale Knowledge bought its final cash for a Michigan knowledge middle.
Whether or not a paper achieve on 1,875 bitcoin and a pair of early-stage Texas energy tasks can carry Canaan till clients begin shopping for machines once more is the query the quarter leaves open.
