Singapore's Canaan Inc Q2 revenue drops, net loss widens on weak bitcoin prices

By Reuters News


Overview

  • Singapore bitcoin mining equipment maker's Q2 revenue fell sharply year-over-year amid weak bitcoin prices

  • Q2 pretax loss missed analyst expectations

  • Company repurchased 16.4 mln ADSs for $7.4 mln using proceeds from digital asset sales


Outlook

  • Canaan expects Q3 2026 total revenue between $11 mln and $15 mln

  • Company says it will continue to monitor global policy and market developments

  • Canaan plans to maintain disciplined inventory and financial flexibility in H2 2026


Result Drivers

  • BITCOIN PRICE PRESSURE - Co said lower bitcoin prices led to weaker mining economics, reduced equipment demand, and lower average selling prices

  • INVENTORY AND ASSET WRITE-DOWNS - Co recorded $25.3 mln in inventory and prepayment write-downs and $9.2 mln in property and equipment impairment, mainly due to lower cryptocurrency prices

  • COST CONTROL MEASURES - Co said it kept mining-machine production costs stable and maintained a competitive power cost base, while tightening spending and cash-flow management


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

$31.86 mln

Q2 Net Loss

$97.61 mln

Q2 Pretax Loss

Miss

$92.20 mln

$36.52 mln (5 Analysts)

Q2 Gross Loss

$29.33 mln

Q2 Loss From Operations

-$69.46 mln

Q2 Operating Expenses

-$40.12 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the blockchain & cryptocurrency peer group is "buy"

  • Wall Street's median 12-month price target for Canaan Inc is $1.50, about 316.7% above its September 4 closing price of $0.36


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