Canaan’s shift from rig sales to self-mining survival

Canaan’s Q2 2026 results paint a firm in defensive transition: revenue collapsed to $31.9 million, down 49% sequentially and 68% year‑over‑year, and the company reported a $97.6 million net loss. The quarter included a $29.3 million gross loss that incorporated a $25.3 million inventory write‑down, and an adjusted non‑GAAP EBITDA loss of $74.9 million. Faced with sharply weaker demand for mining machines, product revenue fell to $13.6 million from $42.9 million the prior quarter, and management guided Q3 revenue to a range of $11 million to $15 million.

Beneath the headline numbers, Canaan materially shifted toward self‑mining as a liquidity and survival lever. The company’s non‑JV mining capacity reached 10.05 EH/s, enabling it to mine 243 BTC during the quarter and generate approximately $17.7 million of mining revenue. Canaan reported all‑in power costs of about $0.043 per kWh. On the balance sheet, crypto holdings totaled 1,915.5 BTC and 3,951.7 ETH as of June 30, 2026, but more than half the BTC—1,117 coins—were pledged as collateral for secured term loans and another 100 BTC were placed in a fixed‑term product, leaving 698.5 BTC in the cryptocurrency assets category. Pledged and fixed‑term coins were recorded separately as cryptocurrency receivables valued at $70.9 million, distinct from cryptocurrency assets valued at $47 million.

Cash improved to $66 million from $43.5 million at March 31. The company disclosed post‑quarter transactions: in late August it sold 3,952 ETH and 54 BTC for about $13.9 million and used part of the proceeds to repurchase roughly 16.4 million American depositary shares for $7.4 million under its buyback program. The $97.6 million loss included noncash charges such as $25.3 million in inventory write‑downs and $9.2 million of property and equipment impairment; these accounting items depress results but do not equate to immediate cash outflows. Remaining inventory carried a book value of $128.8 million, accumulated losses rose to $847 million, and the share count was diluted from 5.99 billion to 10.85 billion. In short, Canaan has reallocated resources toward self‑mining, asset realizations, and share buybacks to preserve runway, while core product demand and operating profitability remain under significant pressure.