Canaan (CAN) Stock: Surges as Mining Hardware Maker Doubles Revenue amid Bitcoin Demand
TLDR
- Canaan’s Q3 revenue jumped 104% year-over-year to $150.5 million, driven by strong demand for Bitcoin mining equipment
- Stock price surged 20% on Tuesday following the earnings report, closing at $1.03 per share
- North American customers accounted for 31% of total revenue with large recurring orders
- Company mined 267 Bitcoin in Q3 at average revenue of $114,485 per coin, bringing total holdings to 1,610 BTC
- Net loss narrowed to $27 million from $75 million in the same quarter last year
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Canaan shares jumped more than 20% on Tuesday after the company reported third-quarter earnings that beat expectations. The Bitcoin mining hardware maker saw revenue double compared to last year.
The company posted $150.5 million in total revenue for Q3. This represents a 104% increase from the same period in 2024. Mining equipment sales made up $118.6 million of that total.
James Jin Cheng, Canaan’s CFO, said the growth came from substantial new orders. He pointed to strong demand from North American customers who placed large repeat orders throughout the quarter.
“Sales of North American customers contributed 31% of our total revenue in quarter three,” Cheng said during the earnings call. The company expressed satisfaction with the recovery in North American market demand.
Strong Performance Across Mining Operations
Canaan’s own mining operations also showed improvement. The company generated $30 million in mining revenue during Q3. This marks a 241% increase year-over-year.
The company mined 267 Bitcoin at an average revenue of $114,485 per coin. By the end of October, Canaan held 1,610 Bitcoin on its balance sheet.
The company’s net loss narrowed to $27 million. This compares favorably to the $75 million loss reported in the same quarter last year. Gross profit reached $16.6 million for the quarter.
Competing With AI Pivot
CEO Nangeng Zhang addressed the growing trend of miners shifting resources toward artificial intelligence. He acknowledged that some companies facing balance sheet pressure are reducing mining operations.
Zhang argued that Bitcoin mining remains the best way to generate revenue while AI infrastructure is still being built. “At this stage, deploying more Bitcoin miners is still the best way to allocate energy today and generate revenues,” he said.
The CEO noted that customers are planning AI-ready mining facilities. However, he said the deployment process takes time and mining can bridge that gap.
Stock Movement and Market Context
Canaan stock closed Tuesday at $1.03. This represented a 21% gain from the previous day’s close. After-hours trading saw the stock rise another 2% to $1.05.
The stock remains down nearly 50% for the year. Many Bitcoin mining companies have faced pressure as mining costs and difficulty increased.
Other mining companies have reported similar earnings strength. HIVE Digital posted a 285% earnings increase on Monday. BitFuFu doubled its third-quarter revenue driven by cloud mining and equipment demand.
The company’s performance comes as Bitcoin miners seek to capitalize on cryptocurrency price movements. Equipment demand has risen across the sector as miners expand operations.
Canaan’s Q3 results showed mining equipment revenue of $118.6 million making up about 79% of total sales. The company reported receiving large recurring orders from US-based clients throughout the quarter.
