Canaan Inc. saw its stock price tumble sharply on Tuesday, dropping more than 13% to $0.418 after reporting a wider first-quarter net loss of $88.7 million. The decline was compounded by a separate announcement of a Nordic district heating expansion, which initially caused a 7% pre-market dip. CEO Nangeng Zhang attributed the challenging quarter to the Bitcoin price slide and new uncertainties, including the conflict between the U.S. and Iran, which cloud the mining hardware market.
Revenue contracted 68% quarter-over-quarter to $62.7 million, with product sales generating $42.9 million as the company completed final deliveries under a major U.S. order. To strengthen its survivability, Canaan reduced quarterly operating expenses to $31.4 million, trimming staffing costs by $2.1 million. The firm mined 257 Bitcoin during the period, holding 1,807 BTC and 3,951 ETH on its treasury, valued at $146 million. It also acquired a 49% stake in Cipher Mining’s ABC Projects in West Texas, aiming to expand into AI and high-performance computing.
In parallel, Canaan’s hash-to-heat technology will power an 8 MW district heating network in the Nordic region, deploying 692 additional Avalon A1566HA hydro-cooled miners on top of an existing 228-unit, 2 MW installation. The system supplies hot water at 80°C to approximately 2,800 homes, replacing fossil-fuel-based heating. The parallel architecture allows dynamic overclocking and underclocking, ensuring stable heat output and simplified maintenance. This project positions Canaan as a leader in sustainable mining solutions, though market reaction remained negative amid the broader earnings miss.
