Canaan, the Bitcoin mining-equipment maker, reported second-quarter 2026 revenue below its earlier guidance on Sept. 8, as weaker machine demand put more weight on its cash and crypto treasury. More than half of its Bitcoin holdings were pledged for loans at June 30.
Revenue totaled $31.9 million, short of the $35 million to $45 million range forecast in May. Product revenue fell to $13.6 million from $42.9 million in the first quarter. Canaan attributed that decline to less computing power sold and lower selling prices amid weaker demand.
Management’s outlook points to further pressure: Canaan forecast third-quarter revenue of $11 million to $15 million. That prospect makes the distinction between treasury holdings and available cash more consequential.
Canaan earnings show Q1 revenue collapse as record BTC and ETH treasury nears $148M
Cash, collateral and buybacks
Canaan’s June 30 total of 1,915.5 BTC included 1,117 BTC pledged for secured term loans and 100 BTC transferred to a fixed-term product. Another 698.5 BTC sat in its cryptocurrency assets category.
The pledged coins therefore represented more than half the total. They were already serving as loan collateral, while the fixed-term allocation was also distinct from cash. The headline Bitcoin balance cannot be read as an equivalent pool of money available for spending.
The pledged and fixed-term Bitcoin was recorded as cryptocurrency receivables worth $70.9 million at June 30, separately from cryptocurrency assets valued at $47 million. It reported $66 million in cash at June 30, up from $43.5 million at March 31, although below the $80.8 million held at the end of 2025.
That cash increase matters alongside the reported $97.6 million quarterly net loss. The loss included noncash charges, among them $25.3 million in inventory and prepayment write-downs and purchase-commitment provisions, plus $9.2 million in property and equipment impairment. It does not measure how much cash the company spent.
Mining also continued to contribute revenue: Canaan produced 243 BTC and generated $17.7 million from mining in the quarter. Management said those operations made a positive cash contribution before depreciation, a narrower measure than profitability for the company as a whole.
The September disclosure also shows Canaan converting some crypto into cash after quarter-end. It said it sold 3,952 ETH and 54 BTC in late August for approximately $13.9 million, using part of the proceeds for share repurchases.
By Sept. 8, repurchases under its existing program totaled about 16.4 million American depositary shares for $7.4 million, including $5.4 million spent in late August.
The sales show that Canaan could turn some holdings into cash, although its June treasury balance predates those transactions. With equipment revenue weakening and a smaller third-quarter revenue range ahead, Canaan’s allocation of cash between operations and repurchases matters more than the Bitcoin total alone.
