Canaan, a manufacturer of ASIC miners, reported a 90% decline in quarterly revenue, with equipment sales plummeting 96% to $4.8 million. Total revenue fell to $14.5 million, while the company posted an operating loss of $42.9 million. Net profit of $8 million was primarily driven by the revaluation of crypto assets and financial derivatives.
The company plans to continue selling crypto reserves to fund a share buyback program. Canaan has authorized a $100 million buyback, with $20 million already announced on November 10. In August, the firm sold 54 BTC and 3,952 ETH for $13.9 million to finance the repurchase of 13.6 million American Depositary Shares.
As of September 30, Canaan held 1,875.5 BTC, with 1,258 BTC pledged as loan collateral and 100 BTC in a financial product. Only 517.5 BTC, valued at $43.7 million, remained as unencumbered crypto assets. To meet Nasdaq minimum price requirements, the company will consolidate its shares at a 25-to-1 ratio on December 4.
Canaan's stock has faced significant pressure, dropping approximately 75% since the beginning of the year. Following a 10.04% rise on November 11 to $0.1798, shares fell 4.34% on the November 12 premarket to $0.1720. The company previously reported a 75% decline in equipment sales in the first quarter of 2026 compared to the prior quarter.
