Bitcoin miner Canaan reported a web lack of $88.7 million for the primary quarter of 2026, as falling Bitcoin (BTC) costs diminished margins and precipitated a big stock write-down.
The corporate posted complete income of $62.7 million for the quarter ending March 31, a pointy drop from the $196.3 million it posted within the earlier quarter, in response to a Tuesday information launch.
Industrial mining tools remained the corporate’s high income driver at $39.6 million, though gross sales fell 75% from the earlier quarter. Self-mining contributed $19.1 million, whereas the house mining section contributed $2.7 million, a class that greater than doubled yr over yr.
Fountain: Canaan
“Though common Bitcoin costs and hash value declined considerably quarter-over-quarter, our bitcoin manufacturing noticed a relatively smaller decline, reflecting the resilience of our mining operations and continued hashrate deployment,” mentioned Jin (James) Cheng, CFO of Canaan.
A $25 million stock write-down affected the quarter’s gross lack of $23 million, whereas the working loss reached $54.3 million.
Canaan self-mining hashrate will increase by 66%
Canaan expanded its self-mining footprint to 11 exahashes per second of put in computing energy, a 66% enhance from the earlier yr. The corporate had 1,808 Bitcoin on its steadiness sheet as of March 31, valued at roughly $121 million.
Within the quarter, Canaan additionally accomplished the acquisition of Cipher Mining’s 49% curiosity in three three way partnership initiatives in West Texas totaling roughly 4.4 EH/s in hashrate capability and 120 megawatts of energy. The deal, closed by an issuance of inventory as a substitute of money, provides Canaan entry to energy charges beneath three cents per kilowatt-hour on the ERCOT grid.
Wanting forward, Canaan guided second-quarter income between $35 million and $45 million, an extra sequential decline.
Canaan shares closed down 3.54% at $0.4827 on Monday, shedding one other 7.71% in premarket buying and selling to $0.4455, in response to Yahoo Finance.
The principle miners report losses within the first quarter
Throughout the sector, main miners together with Riot Platforms, Core Scientific, CleanSpark and TeraWulf reported widening losses within the first quarter. MARA led the pack with a web lack of $1.3 billion, of which roughly $1 billion is tied to non-cash mark-to-market changes on its Bitcoin holdings.
As mining margins compress, a rising variety of miners are turning to synthetic intelligence and high-performance computing as a substitute supply of earnings. On Monday, HIVE Digital Applied sciences introduced plans to construct a 320-megawatt AI knowledge middle campus close to Toronto, able to supporting greater than 100,000 GPUs at full development.
