Canaan’s shares jumped on Tuesday after the Bitcoin mining hardware maker reported that its third-quarter revenue more than doubled year-on-year, fueled by strong demand for mining equipment as many miners experienced higher earnings.
The company said total Q3 revenue rose 104% from last year to $150.5 million, with mining equipment sales accounting for the bulk at $118.6 million, driven by “a substantial volume of new orders.”
Canaan’s CFO, James Jin Cheng, noted during the earnings call that a significant portion of sales came from U.S. clients, who “began actively placing large and repeat orders.”
“North American customers accounted for 31% of our total revenue in Q3. We’re pleased to see a strong recovery in demand in the North American market,” he added.
Other cryptocurrency miners have also posted impressive results. HIVE Digital reported a 285% jump in earnings on Monday, while BitFuFu doubled its third-quarter revenue, driven by strong demand for cloud mining services and hardware as miners aimed to benefit from Bitcoin’s rising price.
Canaan shares soar on earnings
Canaan (CAN) shares surged nearly 21% on Tuesday, closing at $1.03 following the company’s earnings report, with after-hours trading pushing the stock up an additional 2% to $1.05.
Canaan’s stock has fallen nearly 50% this year as many Bitcoin miners shift focus toward artificial intelligence, amid rising mining costs, increased difficulty, and a declining Bitcoin price.
The company reported $30 million in mining revenue for Q3, up 241% year-over-year, and a net loss of $27 million, an improvement from $75 million a year ago. During the quarter, Canaan mined 267 Bitcoin (BTC) at an average revenue of $114,485 per coin, increasing its total holdings to 1,610 BTC by the end of October.
CEO touts Bitcoin mining as a key revenue driver
Canaan CEO Nangeng Zhang told investors that some miners, facing pressure on balance sheets and stock performance, are pivoting to AI, which has reduced mining activity in the medium term.
Still, Zhang emphasized that Bitcoin mining remains a viable strategy while AI infrastructure is being built. “Our customers, including ourselves, are exploring how to develop AI-ready mining facilities for the future,” he said. “At this stage, deploying additional Bitcoin miners is still the best way to utilize energy and generate revenue today, rather than waiting another year or more.”
