<p><strong>Canaan Inc.</strong> (NASDAQ:CAN) stock fell Tuesday after the cryptocurrency mining hardware company reported mixed first-quarter results and issued second-quarter revenue guidance that came in well below Wall Street expectations.</p>



<h2>First-Quarter Revenue And Earnings Weaken</h2>



<p>First-quarter revenue declined to $62.69 million from $82.8 million a year earlier, although it slightly topped analyst estimates of $61.35 million. The company reported a quarterly loss of 13 cents per share, wider than analysts' expectations for a loss of 7 cents per share.</p>



<p>Product revenue fell to $42.9 million from $58.3 million a year ago, primarily due to lower computing power sales. Mining revenue declined to $19.1 million from $24.3 million, mainly because of lower average <strong>Bitcoin</strong> (CRYPTO: BTC/USD) prices, partially offset by higher energized mining computing power.</p>



<h2>Gross Loss Widens Amid Market Pressure</h2>



<p>Canaan posted a gross loss of $22.9 million for the quarter, compared with a gross profit of $646,000 a year earlier. Net loss widened to $88.7 million from $86.4 million in the prior-year period.</p>



<p>As of March 31, 2026, the company held cryptocurrency assets with a fair value of $66.2 million, including 802.6 Bitcoins owned by the company and 63.4 Bitcoins received as customer deposits. Cash and cash equivalents totaled $43.5 million.</p>



<h2>Nordic Heating Project Expands Infrastructure Push</h2>



<p>Canaan also announced it secured a contract through a competitive bidding process to supply hash-to-heat infrastructure for a Nordic district heating network.</p>



<p>The project will deploy Avalon A1566HA hydro-cooled mining units with a planned total capacity of about 8 megawatts. The company said around 2 MW is already operational and supplying hot water to local residents. Following the initial deployment, the customer placed an additional 6 MW order in March 2026.</p>



<p>Management said the project validates the company's hydro-cooling, thermal management and energy-integrated computing capabilities while demonstrating the scalability of hash-to-heat systems within sustainable energy infrastructure.</p>



<h2>Management Highlights AI And Infrastructure Strategy</h2>



<p>CEO <strong>Nangeng Zhang</strong> said the company used the challenging first quarter to improve execution discipline, enhance asset quality and expand its long-term positioning beyond mining hardware into energy and computing infrastructure.</p>



<p>Zhang said Canaan continued advancing its energy plus computing infrastructure strategy through the acquisition of the ABC project in Texas, which added low-cost mining assets and expanded the company's North American footprint.</p>



<p>He added that Canaan continues exploring artificial intelligence and high-performance computing opportunities while building scalable power and computing infrastructure.</p>



<p>CFO<strong> Jin &#34;James&#34; Cheng</strong> said the company maintained operational resilience through expense reductions, inventory optimization and increased North American exposure while preserving liquidity during market volatility.</p>



<h2>Second-Quarter Outlook Misses Expectations</h2>



<p>For the second quarter of 2026, Canaan expects revenue between $35 million and $45 million, well below analyst estimates of $95.94 million.</p>



<p>The company said it will continue monitoring global policy developments and market conditions and may revise its outlook as visibility improves.</p>



<h2>Stock Near 52-Week Low</h2>



<p><strong>CAN Price Action:</strong> Canaan shares were down 13.94% at $0.41 at the time of publication on Tuesday. The stock is trading near its 52-week low of $0.38, according to Benzinga Pro data.</p>



<p><em>Image via Shutterstock</em></p>

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<p>Canaan Inc. (NASDAQ:CAN) stock dropped 14% after reporting a wider Q1 loss of $88.7 million and issuing weak Q2 revenue guidance of $35-$45 million, significantly below analyst expectations. Q1 revenue fell to $62.69 million, with a gross loss of $22.9 million. The company is expanding its infrastructure with a Nordic heating project and focusing on energy and computing strategies. Canaan's stock is near a 52-week low at $0.41.</p>

Bitcoin Miner Canaan Issues Bleak Outlook