Canaan reported a net income of $8 million for the third quarter, driven by a $51.9 million fair-value gain from its bitcoin holdings and derivatives. This profit occurred despite a 96% collapse in mining rig sales compared to the previous year.
Total revenue for the quarter fell to $14.5 million from $150.5 million a year earlier. Product sales contributed $4.8 million, while mining operations generated $9.5 million. The company recorded a gross loss of $8.6 million and an operating loss of $42.9 million.
As of September 30, Canaan held 1,875.5 bitcoin. The company is monetizing these holdings to fund share repurchases, including a new $100 million authorization approved by the board. Additionally, Canaan plans a 1-for-25 reverse ADS split effective around December 4.
Canaan is shifting its strategy toward power and compute infrastructure. The company is developing two 1-gigawatt projects in Texas. To support these infrastructure plans, Canaan has allocated $50 million in restricted cash and spent approximately $1.1 million on land acquisition.
