Cipher

Frank

BUZZ

Bitcoin

Industrial

The&nbsp;<a rel="noopener noreferrer nofollow">Bitcoin</a> (BTC)&nbsp;mining industry has been under severe pressure in 2026, with companies either pivoting to AI or shutting down entirely.&nbsp;
Canaan (Nasdaq: CAN) is the latest to feel the pain as it reported its earnings for the first quarter of 2026 during market hours of May 19.&nbsp;
The company was founded in China in 2013 by CEO Nangeng Zhang and is best known for shipping the world's first ASIC-based Bitcoin&nbsp;mining machines under the <a href="https://www.prnewswire.com/news-releases/canaan-inc-secures-landmark-us-order-strengthening-market-leadership-amid-us-bitcoin-mining-recovery-302573702.html" rel="noopener noreferrer nofollow">Avalon brand.</a>
<a href="https://www.thestreet.com/crypto/investing/analysts-send-blunt-warning-to-bitcoin-miners" rel="noopener noreferrer nofollow">Related: Analysts send blunt warning to Bitcoin miners</a>
<h2 id="revenue-collapses-across-every-segment">Revenue collapses across every segment</h2>
The first quarter of 2026 began with a <a href="https://www.thestreet.com/crypto/business/nasdaq-sends-delisting-threat-to-another-crypto-firm" rel="noopener noreferrer nofollow">delisting notice</a> from Nasdaq on Jan. 15 after&nbsp;its shares traded below $1 for 30 consecutive business days.
Nasdaq gave Canaan until July 13 to regain compliance.
But the first quarter's results pulled the stock further down.&nbsp;At press time, CAN had dropped over 13% to $0.4194.
In fact, since the beginning of the year, the stock has not been able to move above the $1 mark.&nbsp;
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 Canaan's stock movement after Q1 results
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Canaan <a href="https://investor.canaan-creative.com/static-files/9bf858ec-63a0-4798-8a90-d477cb0fab41" rel="noopener noreferrer nofollow">reported</a>&nbsp;a net loss of $88.7 million for the first quarter of 2026.&nbsp;
Industrial mining equipment, Canaan's primary revenue driver, brought in $42.9 million, down 74% from the prior quarter's $164.9 million, as falling Bitcoin prices crushed demand for new machines.&nbsp;
Self-mining contributed $19.1 million, while the home mining segment added $2.7 million, the one bright spot, more than doubling year-on-year. A $24.5 million inventory write-down weighed heavily on results, pushing gross loss to $23 million and operating loss to $54.3 million.
Total revenue came in at $62.7 million, a steep 68% decline from the $196.3 million it posted the previous quarter.
CFO Jin Cheng acknowledged the <a href="https://www.thestreet.com/crypto/policy/jpmorgan-predicts-massive-shift-by-mid-year" rel="noopener noreferrer nofollow">difficult environment</a> but pointed to operational resilience, noting that Bitcoin production declined at a lower rate than the drop in average Bitcoin prices and hash price would have suggested.
<h3 id="trending-on-thestreet-roundtable">Trending on TheStreet Roundtable</h3>
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<h2 id="a-pivot-in-progress">A pivot in progress</h2>
Despite the headline losses, Canaan is repositioning.
The company completed its acquisition of Cipher Mining's 49% stake in three West Texas joint venture projects, totalling 4.4 EH/s in <a href="https://www.thestreet.com/crypto/markets/how-bitcoins-hashrate-impacts-mining-profitability-and-market-prices" rel="noopener noreferrer nofollow">hashrate capacity</a> and 120 megawatts of power, at power rates below three cents per kilowatt-hour on the ERCOT grid.
Self-mining capacity expanded to 11 exahashes per second, up 66% year-on-year, and the company held about 1,808 BTC on its balance sheet, worth approximately $121 million.
Canaan guided second-quarter revenues between $35 million and $45 million, signalling further near-term pain ahead.
<a href="https://www.thestreet.com/crypto/markets/hive-digital-co-founder-frank-holmes-says-sanctioned-countries-like-iran-are-secretly-mining-bitcoin" rel="noopener noreferrer nofollow">Related: HIVE Digital co-founder Frank Holmes says sanctioned countries like Iran are secretly mining Bitcoin</a>

Mining stock tanks on Q1 loss as Nasdaq delisting threat looms

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