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