Canaan Inc. (CAN) experienced a significant decline in its stock price, dropping 6.9% to close at $0.56 on Tuesday, despite posting its best quarterly performance in three years. The crypto mining firm reported a remarkable 121.1% year-over-year increase in revenue, totaling $196.3 million, which surpassed analyst expectations.
However, the company fell short on earnings, reporting a loss of $0.89 per share, significantly missing estimates by $0.88. This disappointing earnings report overshadowed the positive revenue figures, leading investors to react negatively.
Canaan”s financial snapshot for fiscal year 2025, which remains unaudited, indicated total revenues of $529.7 million alongside a gross profit of $41.2 million. The revenue distribution revealed that industrial sales contributed $386.7 million, self-mining accounted for $113.2 million, and home sales brought in $24.6 million.
In terms of asset accumulation, Canaan achieved a record high in its Bitcoin holdings, amassing 1,750 BTC valued at approximately $120 million. Furthermore, the firm increased its Ethereum assets to 3,950 ETH, reflecting a growing cryptocurrency treasury. This growth is particularly noteworthy given the backdrop of a declining Bitcoin network hashrate, which saw a drop from a peak of 1,150 EH/s to 980 EH/s in recent months.
Canaan”s Q4 performance was bolstered by a surge in demand for mining hardware. The company shipped a record 14.6 EH/s of mining equipment during the quarter, marking a 60% year-over-year increase. This spike in shipments was driven by a significant order from a US institutional buyer, although the company has not disclosed the details of this client.
Despite these positive indicators, Canaan”s stock faces mounting pressure as it trades below the crucial $1 mark, a threshold necessary to maintain its listing on the Nasdaq. The exchange issued a compliance warning on January 16, stating that Canaan must remain above the $1 level for ten consecutive trading days by July 13 to avoid potential delisting.
Currently, Canaan”s shares need to increase by 79% to meet this requirement, as the company has not traded above $1 since late November 2025. This precarious position highlights the ongoing challenges facing the crypto mining sector, which has struggled with diminishing profit margins amid fluctuating Bitcoin prices and rising mining difficulty.
In conclusion, while Canaan”s latest quarterly results demonstrate strong operational performance, the stock”s decline reflects investor concerns over earnings misses and the looming threat of delisting. The company”s ability to navigate these challenges will be critical as it seeks to regain investor confidence and maintain its position in the competitive landscape of cryptocurrency mining.
