Canaan Reports 68% Revenue Drop, Widening Net Loss Amid Crypto Turmoil
Canaan, a Singapore-based Bitcoin miner and hardware maker, reported a first-quarter net loss of $88.7 million, widening from $85 million in the previous quarter. Revenue plunged 68% quarter-over-quarter to $62.7 million. CEO Nengang Zhang cited reduced Bitcoin mining profitability due to digital asset price declines and uncertainties from the Middle East conflict. To ensure survivability, Canaan cut operating expenses to $31.4 million and staffing costs. The company is pivoting toward high-performance computing and AI infrastructure, similar to competitors capitalizing on the AI boom. It mined 257 Bitcoin in Q1 and holds 1,807 Bitcoin and 3,951 Ethereum valued at $146 million. Canaan also acquired a 49% stake in Cipher Mining’s ABC Projects in West Texas to expand power infrastructure access. Shares fell over 13% to $0.418 after earnings.
Key facts
- Q1 net loss widened to $88.7 million from $85 million in Q4 2024.
- Revenue fell 68% quarter-over-quarter to $62.7 million.
- CEO cites Bitcoin price slide and Middle East conflict as headwinds.
- Canaan cut operating expenses to $31.4 million and staffing costs.
- Company holds 1,807 Bitcoin and 3,951 Ethereum, valued at $146 million.