Mining Hardware Demand Powers Canaan’s Fourth-Quarter Comeback
Canaan Inc. reported fourth-quarter revenue of $196.3 million, a 121.1% increase from a year earlier, driven largely by surging demand for its mining machines, according to unaudited results released Feb. 10. Full-year revenue climbed 96.7% to $529.7 million, reflecting a broad recovery across the bitcoin mining supply chain.
Product revenue from mining hardware accounted for $164.9 million in the quarter, up 124.5% year over year, as customers placed large orders to upgrade fleets and chase higher efficiency. The company said fourth-quarter computing power sales hit a record 14.6 exahash per second (EH/s), pointing to how quickly miners returned once economics improved.
Self-mining operations also added a meaningful lift. Canaan mined 300 bitcoins during the quarter, generating $30.4 million in mining revenue, nearly doubling from the prior year. Installed hashrate reached 9.91 EH/s by year’s end, with 7.65 EH/s actively operating, an 82% annual increase that outpaced overall network growth.
Despite the revenue pop, profitability remained elusive. Canaan posted a fourth-quarter net loss of $85.0 million, weighed down by noncash items including $44.3 million in fair-value losses tied to cryptocurrency holdings and $13.9 million in inventory write-downs. Management framed those charges as accounting headwinds rather than operational cracks.
The balance sheet told a more upbeat story. Canaan ended the year holding roughly 1,750 BTC and 3,951 ETH, giving the company one of its largest crypto treasuries to date. Cash and cash equivalents totaled $80.8 million, providing flexibility as market conditions evolve.
Strategically, the company is pushing beyond pure hardware sales. Executives said Canaan is expanding into energy-compute infrastructure and household-focused products, while targeting gigawatt-scale power capacity in the United States by the end of 2026.
Looking ahead, management projected first-quarter 2026 revenue of $60 million to $70 million, a sequential pullback that reflects customer timing and shifting order cycles. Still, after a fourth-quarter rebound of this size, Canaan has clearly reentered the conversation among bitcoin mining suppliers.
FAQ ❓
- Why did Canaan’s revenue jump in Q4?
A rebound in bitcoin mining hardware demand drove a surge in product sales. - Did Canaan return to profitability?
No, the company posted a net loss due mainly to noncash valuation charges. - How large is Canaan’s crypto treasury?
Canaan held about 1,750 BTC and 3,951 ETH at year’s end. - What is Canaan’s outlook for early 2026?
The company expects lower first-quarter revenue as orders normalize.
