Canaan sells crypto to fund share buybacks after $97 million loss

Canaan sold 3,952 ETH and 54 BTC in late August for roughly $13.9 million and used part of the proceeds to repurchase American depositary shares after reporting a $97.6 million net loss for the second quarter.

The company reported $31.9 million in revenue for the quarter, below the $35 million to $45 million range it had guided in May. Product revenue declined to $13.6 million from $42.9 million in the prior quarter, which the company attributed to lower demand for computing power and weaker selling prices. Total revenue included $17.7 million from mining operations; Canaan produced 243 BTC in the quarter and reported mining generated positive cash flow before depreciation.

Canaan forecast third-quarter revenue of $11 million to $15 million and noted continued pressure on equipment sales in its quarterly filing.

At June 30 the company held 1,915.5 BTC in total. Of that amount, 1,117 BTC were pledged as collateral for secured term loans and 100 BTC were placed in a fixed-term product. The remaining 698.5 BTC were classified as cryptocurrency assets. The pledged and fixed-term allocations were recorded as cryptocurrency receivables valued at $70.9 million, while cryptocurrency assets were reported at $47.0 million.

The company reported $66.0 million in cash at June 30, up from $43.5 million at March 31 and below the $80.8 million held at the end of 2025. The $97.6 million quarterly net loss included noncash charges: $25.3 million in inventory and prepayment write-downs and purchase-commitment provisions, and $9.2 million in property and equipment impairment.

The late-August sales of ETH and BTC were disclosed after the quarter closed. Proceeds from those sales, about $13.9 million, were used in part to buy back ADS under Canaan’s existing repurchase program. Repurchases under the program totaled about 16.4 million ADS for $7.4 million as of Sept. 8, including roughly $5.4 million of repurchases executed in late August.