Singapore's Canaan Inc Q2 revenue drops, net loss widens on weak bitcoin prices

OverviewSingapore bitcoin mining equipment maker's Q2 revenue fell sharply year-over-year amid weak bitcoin pricesQ2 pretax loss missed analyst expectationsCompany repurchased 16.4 mln ADSs for $7.4 mln using proceeds from digital asset salesOutlookCanaan expects Q3 2026 total revenue between $11 mln and $15 mlnCompany says it will continue to monitor global policy and market developmentsCanaan plans to maintain disciplined inventory and financial flexibility in H2 2026Result DriversBITCOIN PRICE PRESSURE - Co said lower bitcoin prices led to weaker mining economics, reduced equipment demand, and lower average selling pricesINVENTORY AND ASSET WRITE-DOWNS - Co recorded $25.3 mln in inventory and prepayment write-downs and $9.2 mln in property and equipment impairment, mainly due to lower cryptocurrency pricesCOST CONTROL MEASURES - Co said it kept mining-machine production costs stable and maintained a competitive power cost base, while tightening spending and cash-flow managementCompany press release:Key DetailsMetricBeat/MissActualConsensus EstimateQ2 Revenue$31.86 mlnQ2 Net Loss$97.61 mlnQ2 Pretax LossMiss$92.20 mln$36.52 mln (5 Analysts)Q2 Gross Loss$29.33 mlnQ2 Loss From Operations-$69.46 mlnQ2 Operating Expenses-$40.12 mlnAnalyst CoverageThe current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"The average consensus recommendation for the blockchain & cryptocurrency peer group is "buy"Wall Street's median 12-month price target for Canaan Inc is $1.50, about 316.7% above its September 4 closing price of $0.36Reuters Recommended ReadsSept 7 - UAE's Gulf Marine Services swings to H1 net loss, revenue falls due to Gulf conflictFor questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .