Canaan Inc.

Total revenue in Q2 2026 was approximately $32 million, below the prior guide of $35 million to $45 million. Product revenue was about $14 million and mining revenue was about $18 million, with 2.5 EH/s sold at an average selling price of $5.5 per TH/s and 243 Bitcoins mined. Management said mining accounted for 55% of revenue, and gross margin for the mining business, excluding depreciation, was 20%. Adjusted EBITDA was a loss of $74.9 million. Cash at quarter end was $66 million, up about $23 million from $43 million in Q1, while total operating expenses were $40 million; excluding $9.2 million of PPE impairment and $2.7 million of credit losses, operating expenses were $28.2 million, down 9% sequentially and 14% year over year. For Q3 2026, revenue guidance is $11 million to $15 million.

NG Zhang described Q2 as a difficult environment, citing Bitcoin volatility, weak hash price, cautious miner buying, high industry inventory, and continued policy/geopolitical pressure. He said Canaan responded by tightening spending, managing inventory more carefully, focusing on actual orders, and evaluating whether to sell or deploy existing machines based on returns. He framed the company’s strategy as a gradual shift toward owning and optimizing long-term power resources, while still keeping options open between mining and broader compute use cases.

James Cheng emphasized cash preservation, saying cash increased to $66 million from $43 million in Q1 despite weaker revenue. He pointed to $54 million of cash collected from product sales, $15 million from VAT refunds, cash distributions and Bitcoin-backed financing, and $35 million of operating/working-capital outflows plus $11 million for wafer purchases. He also highlighted disciplined spending, with operating expenses of $40 million including $9.2 million of impairment charges and $2.7 million of credit losses, and noted $7.4 million of ADS repurchases year to date after selling all Ethereum and 54 Bitcoins for about $13.9 million in cash.

Analysts pressed for detail on the 1 GW power pipeline, potential HPC strategy, and whether Canaan would pursue co-location, GPU cloud rental, or data-center development in-house. Management said it is too early to choose a final model, and that it will likely work through partnerships and JVs, using mining machines and existing resources where they add value rather than trying to build an end-to-end business alone. Questions also focused on share repurchase pacing and Project ABC milestones; management said repurchases will depend on market conditions and compliance needs, while Project ABC remains a staged optimization effort rather than a fixed near-term target.