Weak guidance weighs heavily on crypto miner shares
Canaan Inc. (NASDAQ:CAN) shares dropped 9.86% in premarket trading on Tuesday after the cryptocurrency mining company reported first-quarter results below analyst expectations and issued second-quarter guidance that came in far weaker than forecast.
The company posted an adjusted loss of $0.86 per ADS for the quarter, missing analyst estimates for a loss of $0.03 by $0.83.
Quarterly revenue totaled $62.7 million, below the consensus forecast of $64.68 million, although the figure matched the company’s previously issued guidance. Revenue also declined 24% from $82.8 million reported in the same quarter last year.
Second-quarter forecast falls sharply below expectations
For the second quarter of 2026, Canaan projected revenue in the range of $35 million to $45 million. The midpoint of the outlook, at $40 million, was dramatically below analyst expectations of $98.15 million.
The company said the weaker guidance reflects “near-term market conditions and evolving customer dynamics.”
During the quarter, Canaan mined 257 bitcoins and expanded its cryptocurrency holdings to record levels of 1,807.60 BTC and 3,951.53 ETH as of March 31, 2026.
Installed mining computing power across the company’s 10 joint-mining projects reached around 11 EH/s, representing sequential growth of 10.7%.
“Despite bitcoin price volatility, compressed hashprice conditions, elevated energy costs, and weather-related disruptions in North America, we delivered total revenue of $62.7 million, which was in line with our guidance,” said Nangeng Zhang, chairman and CEO.
Losses widen despite expansion efforts
Canaan reported a net loss of $88.7 million for the quarter, compared with a net loss of $86.4 million in the same period a year earlier.
Adjusted EBITDA loss widened to $76.3 million from $38.1 million a year ago.
During the quarter, the company acquired a 49% stake in ABC Projects in West Texas from Cipher Mining, adding roughly 4.4 EH/s of operational hashrate capacity.
Canaan also said it deployed hash-to-heat infrastructure in the Nordic region, where 2 MW of capacity is currently operational.