Canaan, the manufacturer of Bitcoin mining equipment, announced on Sept. 8 that its second-quarter 2026 revenue fell short of previous guidance. The drop placed increased pressure on its cash reserves and cryptocurrency treasury as demand for machines weakened, leaving over half of its Bitcoin holdings pledged as loan collateral by June 30.
Total revenue came in at $31.9 million, missing the projected range of $35 million to $45 million issued in May. Product revenue dropped from $42.9 million in the first quarter to $13.6 million, a decrease that Canaan linked to lower selling prices and a reduction in computing power sold amid softer demand.
Management’s forecast points to continued headwinds, with third-quarter revenue expected to land between $11 million and $15 million. This outlook highlights the crucial difference between the company’s total treasury holdings and its readily available cash.
Cash, collateral and buybacks
Out of Canaan’s 1,915.5 BTC total as of June 30, 1,117 BTC were committed to secured term loans, 100 BTC were placed into a fixed-term product, and the remaining 698.5 BTC were categorized simply as cryptocurrency assets.
Because the pledged coins accounted for more than half of the overall balance and were tied up as loan collateral—alongside the separate fixed-term allocation—the headline Bitcoin figure cannot be treated as a liquid pool of funds ready for immediate spending.
The company registered the pledged and fixed-term Bitcoin as cryptocurrency receivables valued at $70.9 million as of June 30, distinct from the $47 million worth of cryptocurrency assets. Meanwhile, cash holdings were reported at $66 million on June 30, improving from $43.5 million on March 31, though remaining lower than the $80.8 million recorded at the close of 2025.
This rise in cash must be viewed alongside the quarterly net loss of $97.6 million. That loss incorporated noncash charges, including $25.3 million related to inventory and prepayment write-downs alongside purchase-commitment provisions, as well as a $9.2 million impairment on property and equipment. Consequently, the net loss figure does not reflect the exact amount of cash expended by the firm.
Mining operations continued generating revenue as well, yielding 243 BTC and $17.7 million during the quarter. Executives noted that these activities delivered a positive cash contribution prior to depreciation, representing a narrower metric than overall corporate profitability.
Subsequent disclosures in September revealed that Canaan converted a portion of its crypto assets into cash following the close of the quarter. In late August, the company liquidated 3,952 ETH and 54 BTC for roughly $13.9 million, deploying part of those funds toward share buybacks.
By Sept. 8, ongoing repurchases via its existing program reached approximately 16.4 million American depositary shares at a cost of $7.4 million, which included $5.4 million spent during late August.
These sales demonstrate Canaan’s ability to liquidate portions of its holdings, although the June treasury figures predate those transactions. With slowing equipment sales and a reduced revenue target projected for the third quarter, how Canaan distributes its cash between business operations and share buybacks carries greater importance than the aggregate Bitcoin balance alone.
Frequently Asked Questions
What was Canaan’s revenue for the second quarter of 2026?
Canaan reported second-quarter 2026 revenue of $31.9 million, which came in below its earlier forecasted range of $35 million to $45 million.
How many Bitcoin did Canaan hold as of June 30, 2026?
Canaan held a total of 1,915.5 BTC as of June 30, which included 1,117 BTC pledged for secured term loans, 100 BTC placed in a fixed-term product, and 698.5 BTC categorized as cryptocurrency assets.
Why did Canaan sell some of its cryptocurrency after the quarter ended?
In late August, Canaan sold 3,952 ETH and 54 BTC for approximately $13.9 million and used a portion of the proceeds to fund share repurchases under its existing program.
