The latest financial report of Bitcoin mining machine manufacturer Canaan Technology (Canaan, NASDAQ: CAN) reveals the dilemma of the mining boom!

2026 announced by the company on November 10Third quarter financial reportIt shows that revenue fell by 90% year-on-year to US$14.5 million, and sales revenue from mining machine products plummeted by 96%. Although its core business continued to suffer losses, Canaan recorded a net profit of US$8 million thanks to fair value gains on crypto assets and financial derivatives totaling approximately US$52 million. However, CAN's stock price still plunged 18.41% on the day the financial report was announced, reflecting market doubts about the demand for mining machines and the quality of profits.

Mining machine sales plummeted 96%, Canaan's third-quarter revenue was only $14.5 million

According to Canaan Technology’s third-quarter official financial report, the company’s revenue for this quarter dropped from US$150.5 million in the same period last year to US$14.5 million, an annual decrease of approximately 90.4%, and lower than analysts’ expectations of US$34.9 million.

Among them, revenue from mining machine products was only US$4.8 million, a significant decrease of approximately 96% from US$118.6 million in the same period last year. In the third quarter, approximately 1 EH/s of computing power was sold, reflecting a significant cooling in market procurement demand.

The self-operated mining business is also under pressure, with revenue falling to US$9.5 million from US$30.6 million in the same period last year, and a total of 133 BTC were mined this quarter.

Zhang Nangeng, chairman and CEO of Canaan Technology, said in the financial statement: "Demand for Bitcoin mining machines continues to be weak, and industry price competition remains fierce." The company pointed out that the decline in mining machine sales was mainly affected by reduced shipments of computing power, falling average selling prices and weak overall market demand.

Book profit was US$8 million, but core operating loss widened to US$42.9 million

Despite the sharp decline in revenue, Canaan still recorded a net profit of US$8 million in the third quarter, compared with a loss of US$27.7 million in the same period last year, successfully turning its book into a profit.

The key reason is not the improvement in the mining machine business, but the asset valuation gains. The financial report shows that the company recorded a cryptocurrency fair value gain of $20.1 million and a fair value gain on financial derivatives of $31.9 million this quarter, totaling approximately $52 million.

However, Canaan's operating loss widened to US$42.9 million from US$23.9 million in the same period last year, indicating that recurring business is still under significant pressure.

Jin Cheng, Chief Financial Officer of Canaan, admitted in an official statement: "We know that such non-cash income is different from basic operating performance." In other words, Canaan's profit turnaround this quarter is highly dependent on changes in the valuation of crypto assets and derivatives, and it does not mean that the mining machine manufacturing and mining business has returned to stable profitability.

Holds approximately 1,875 BTC, announces stock buyback and layout of Texas power facilities

As of September 30, Canaan Technology’s declared crypto asset reserves were approximately 1,875.5 BTC, including Bitcoin directly held, pledged, and invested in fixed-term products.

The company also announced new stock repurchase measures. The board of directors approved repurchase authorization of up to $100 million and launched the first $20 million of the repurchase program.

On the other hand, Canaan is promoting the transformation of energy and computing infrastructure. Its 1 GW power project in Duval County, Texas, USA has made conditional progress in the grid connection process, while another 1 GW project in Zapata County is still in the early development stage. These plans reflect the company's desire to reduce its reliance on a single mining machine sales business, but the relevant power projects still need to complete follow-up research and approval, and cannot yet be regarded as forming a stable new source of income.

The market's reaction to Canaan's financial report was pessimistic. According to the historical market conditions of Stock Analysis, CAN closed at $0.1649 on November 10, a single-day drop of 18.41%.

Canaan also announced plans to adjust the ratio of American depositary shares (ADS) around December 4, equivalent to merging every 25 units of old ADS into 1 unit of new ADS, to improve compliance with Nasdaq's minimum stock price requirements. This measure will not directly increase the company's revenue or fundamental value.

At the same time, according to CoinGlass on the morning of November 11, Bitcoin was trading at about $73,647, down 1.97% in 24 hours, reflecting that mining companies are still facing a weak encryption market environment.

Canaan expects fourth-quarter revenue to be between $18 million and $22 million, an improvement from the third quarter but still well below the same period last year.

Canaan Technology's financial report highlights the current dilemma of Bitcoin mining: demand for mining machines continues to shrink, and asset valuation gains can temporarily improve book profits, but cannot replace sustainable core operating cash flow.

〈Canaan Technology’s revenue plummets 90%! Mining machine sales shrank by 96%, CAN stock price fell by 18%〉This article was first published inBlock Guest》.