Canaan Stock Surges 21% Despite Bitcoin Downturn as Q3 Revenue Doubles
Bitcoin mining hardware maker Canaan Inc. went against the trend of the rest of the market on Tuesday. Its stock rose about 21% after the
Quick overview
- Canaan Inc.'s stock surged 21% after reporting a 104% increase in third-quarter revenues, driven by strong demand from North American clients.
- The company achieved a gross profit of $16.6 million, a significant turnaround from a gross loss of $21.5 million in the same quarter last year.
- Canaan's self-mining operations generated $30.6 million in revenue, marking a 241% increase from the previous year, while the company mined 267 Bitcoin during the quarter.
- Despite challenges in the Bitcoin mining sector, CEO Nangeng Zhang emphasized the company's commitment to mining while also exploring AI-ready infrastructure.
Bitcoin mining hardware maker Canaan Inc. went against the trend of the rest of the market on Tuesday. Its stock rose about 21% after the company reported that its third-quarter earnings more than doubled from the same time last year.
The stock of the corporation on the Nasdaq finished at $1.03, a big change in fortune for a company that has had a lot of trouble in 2025. Even though Bitcoin fell below $90,000 for the first time since April, the rally showed that investors trust Canaan’s business fundamentals even when the price of cryptocurrencies changes quickly.
Strong North American Demand Drives Growth
Canaan’s overall revenues for the third quarter were $150.5 million. This was a 104% rise from the same quarter last year and a 50% increase from the second quarter. Sales of mining equipment brought in the most money, totaling $118.6 million. The business said this was due to a “substantial volume of new orders.”
James Jin Cheng, the Chief Financial Officer, said that a lot of the success was due to U.S. clients who had a revived interest in the company. These customers made up 31% of total quarterly sales. Cheng added on the company’s earnings call, “We are happy to see the strong demand recovery of the North American market.” He noted that American clients have been placing large, recurring purchases.
The company made a huge turnaround in its operations, going from a gross loss of $21.5 million in the same quarter last year to a gross profit of $16.6 million this year. Canaan still had a net loss of $27.7 million, but this was a big improvement over the $75.6 million loss it had in the third quarter of 2024.
Canaan’s BTC Mining Operations Expand
Canaan’s self-mining operations brought in $30.6 million in revenue, a 241% increase from the previous year. The company mined 267 Bitcoin BTC/USD during the quarter and made an average of $114,485 each coin. It also sold more than 10 exahashes per second of processing power, which was a record for the quarter with 56% growth from the previous quarter.
At the end of October, Canaan’s treasury had risen to 1,610 Bitcoin and 3,950 Ethereum, which are worth about $150 million and $12.3 million at current values. The company’s financial position has improved to $119.2 million, thanks to a $72 million strategic investment from big institutional investors like Brevan Howard and Galaxy Digital.
CEO Defends Bitcoin Mining Amid AI Pivot
Canaan’s profits come at a time when the Bitcoin mining sector is facing challenges, as many companies are switching to artificial intelligence infrastructure since mining is getting harder and more expensive. CEO Nangeng Zhang admitted that these pressures were real, but he stood behind Bitcoin mining as the best short-term approach.
“At this point, adding more Bitcoin miners is still the best way to use energy and make money,” Zhang told investors. He also said that setting up AI infrastructure takes a lot of effort. He also said that Canaan and its customers are working on building AI-ready mining facilities so that they can be used in the future.
The business just released its next-generation A16XP mining equipment, which has 300 terahashes per second of computing capability and uses less electricity. Canaan has already received an order for more than 50,000 units from a big U.S. client and has started a prototype gas-to-computing operation in Canada.
Canaan expects Q4 revenues to be between $175 to $205 million, which shows that the company is confident that demand will stay strong even though the market is still volatile. For now, the company seems to be in a good position to take advantage of what Zhang sees as a time of change in the cryptocurrency mining world.Try again
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