Canaan Inc. released its second quarter fiscal 2026 results on September 8, revealing significant operational challenges across its computing and energy infrastructure business. The company generated total revenue of $31.9 million during the quarter, representing a substantial decline from $100.2 million in the corresponding period of the prior fiscal year and $62.7 million in the first quarter of 2026.
The company reported a net loss of $97.6 million for the quarter, a marked deterioration from the $11.1 million loss recorded in Q2 of the prior fiscal year. Products revenue fell to $13.6 million from $71.9 million year-over-year, driven by weaker demand for mining equipment as lower bitcoin prices reduced both the volume of computing power sold and average selling prices. Mining segment revenue declined to $17.7 million from $28.1 million in the prior-year quarter. However, the mining segment continued to generate positive cash contributions, producing 243 bitcoins during the period and benefiting from favorable power economics.
Digital asset holdings provided some bright spot in results, with the company’s treasury reaching a record 1,915.5 bitcoin and approximately 3,952 ethereum as of June 30. The company sold 2.5 EH/s of computing power during the quarter. Management emphasized controlled spending and efficient cash management strategies during the period.
Fair value fluctuations in financial derivatives and cryptocurrency holdings created significant headwinds, with losses of $8.9 million and $9.3 million respectively in the quarter, compared to gains of $23.4 million and $10.6 million in the prior-year period. Net foreign exchange losses totaled $3.0 million. Forward guidance indicated mounting pressure, with third-quarter revenue expected to range between $11 million and $15 million, well below second quarter levels. Institutional sentiment toward the company remained weak, with only 6 hedge funds holding positions according to recent 13F filings, and short interest at 8.90%.
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