The quarterly deficit ballooned significantly from the $11.1 million loss reported during the same period last year. Total revenue collapsed to $31.9 million, down from $100.2 million a year ago, as the company struggled with both lower sales volumes and compressed pricing for its mining equipment. Revenue from hardware products specifically plummeted to $13.6 million, hit hard by reduced computing power demand and smaller margins on each unit sold.
In section Market Quotes
Canaan Shares Plummet as Mining Revenue and Bitcoin Prices Stall
A 10% slide in Canaan’s American depositary receipts on Tuesday underscored a bruising second quarter, as the crypto-mining firm grappled with a $97.6 million loss. The company’s valuation has now shed nearly 60% since January, reflecting the cooling demand for hardware amid broader volatility in the digital asset market.
Chief Executive Nangeng Zhang attributed the decline to a confluence of market pressures, citing weaker mining economics and seasonal power constraints that hindered profitability. While mining revenue fell to $17.7 million, Zhang remains focused on fleet upgrades and long-term infrastructure development to navigate current headwinds.
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