Canaan Inc. (NASDAQ: CAN), the Singapore‑based bitcoin mining hardware maker, is back in the spotlight after reporting a blockbuster third quarter and triggering a sharp rally in its shares, even as the broader crypto market stumbles.
By midday on Wednesday, Canaan’s stock was trading around $1.03, up roughly 22% from the previous close, giving the company a market value of about $475 million. [1]
The move caps a two‑day surge sparked by Q3 2025 revenue of $150.5 million, more than double last year’s level and well ahead of Wall Street expectations, powered by booming demand for bitcoin mining machines and growth in the company’s own mining operations. [2]
Key takeaways
- Revenue doubled year‑on‑year to $150.5 million in Q3 2025, up 104.4% YoY and 50.2% QoQ, beating consensus estimates around $130 million. [3]
- Product sales reached $118.6 million, while mining revenue hit a record $30.6 million, up 241% YoY. [4]
- Gross profit swung to $16.6 million from a $21.5 million gross loss a year earlier, but Canaan still recorded a net loss of $27.7 million. [5]
- The company’s bitcoin treasury climbed to 1,610 BTC and 3,950 ETH by the end of October, worth over $160 million at recent prices. [6]
- Management is guiding for Q4 2025 revenue of $175–$205 million, and analysts have recently lifted the average price target to $4 from $2.88. [7]
Blowout Q3 2025 results fuel the rally
Canaan’s official earnings release for the quarter ended 30 September 2025 showed a dramatic rebound in top‑line growth. Total revenue came in at $150.5 million, exceeding the high end of management’s prior guidance range and rising 104.4% year‑on‑year and 50.2% sequentially. [8]
That beat comfortably cleared analyst forecasts that had clustered around $130 million, according to data from Investing.com and ChartMill. [9]
Product and mining revenue both accelerate
Canaan’s business is now driven by two engines:
- Hardware sales – primarily Avalon‑branded bitcoin mining rigs
- Self‑mining operations, where the company runs its own machines
In Q3:
- Product revenue rose to $118.6 million, up from $64.6 million a year earlier and $71.9 million in Q2, helped by higher computing power sold and higher average selling prices. [10]
- Mining revenue hit a record $30.6 million, versus $9.0 million in Q3 2024, as Canaan mined 267 BTC at an average revenue of about $114,500 per coin. [11]
The company sold more than 10 exahashes per second (EH/s) of computing power in the quarter—its highest level ever—representing 37.7% growth year‑on‑year and 55.6% sequentially. [12]
North America emerged as a key growth region, with U.S. and Canadian miners accounting for roughly 31% of total revenue as large, repeat orders resumed, according to comments from CFO Jin “James” Cheng on the earnings call and in subsequent coverage. [13]
Profitability improves, but losses remain
Canaan’s aggressive expansion is starting to show up in profitability metrics, though the bottom line is still red.
- Gross profit climbed to $16.6 million, reversing a $21.5 million gross loss in Q3 2024 as inventory write‑downs fell and pricing improved. [14]
- Gross margin reached about 11%, compared with a negative margin a year earlier. [15]
- Net loss narrowed to $27.7 million from $75.6 million in the prior‑year quarter, while non‑GAAP adjusted EBITDA turned positive at $2.8 million. [16]
Earnings per share are more complicated. Canaan reported a GAAP loss of $0.05 per ADS, each representing 15 ordinary shares. [17] Some external data providers, using different share counts and metrics, calculated an EPS of about ‑$0.36, a steep miss versus a consensus forecast near breakeven. [18]
That discrepancy has led many commentators to frame the quarter as a huge revenue beat paired with an EPS miss, highlighting that the company is still working to translate top‑line momentum into sustainable profits. [19]
Stock jumps as Canaan defies bitcoin’s downturn
The strength of the results has stood out all the more because it comes amid a pullback in crypto prices. Bitcoin briefly slipped below $90,000 this week, its lowest level since April, yet Canaan’s share price moved sharply higher. [20]
Over the past 24 hours:
- CoinCentral and Blockonomi both reported that Canaan’s stock surged around 20–21%, closing near $1.03 on Tuesday following the earnings release, with after‑hours gains nudging it still higher. [21]
- FX Leaders and Bitget News likewise flagged a 21% jump in response to the revenue surge and record mining output. [22]
- Benzinga and Investing.com placed Canaan on their lists of top pre‑market gainers and small‑cap movers, citing gains of 10–18% as traders digested the numbers. [23]
Real‑time quote data from U.S. markets on Wednesday show CAN trading slightly above $1.00, up more than 20% on the day and over 20% for the week. [24]
Record crypto treasury and a beefed‑up balance sheet
One of the most eye‑catching aspects of the Q3 report is Canaan’s expanding stash of digital assets.
- By the end of Q3, the company held about 1,582 BTC and 2,830 ETH. [25]
- By the end of October, those balances had grown to 1,610 BTC and 3,950 ETH, a new record for the firm’s crypto treasury. [26]
At recent market prices, multiple outlets estimate that this combined bitcoin and ether position is worth over $160 million, representing a substantial store of value on Canaan’s balance sheet. [27]
Management also highlighted a sharp improvement in liquidity:
- Cash and cash equivalents rose to roughly $119 million, up 80.9% versus the prior period, as strong sales converted to cash. [28]
- In early November, Canaan received a $72 million strategic investment from institutional backers identified in some coverage as Brevan Howard and Galaxy Digital, further bolstering its capital base. [29]
This mix of cash and digital assets gives the company more flexibility to weather crypto cycles, invest in new hardware generations and pursue energy‑related projects.
A broader strategy: from mining machines to energy and AI‑ready infrastructure
Canaan is positioning itself not just as a box‑seller in the mining industry, but as an integrated technology and energy partner.
Hardware roadmap: A16XP and beyond
In late October, the company announced its Avalon A16 series, including the air‑cooled A16XP model, which features up to 300 TH/s of hash rate and energy efficiency of about 12.8 J/TH, targeting high‑end industrial miners. [30]
The Q3 release and subsequent commentary also referenced:
- A 50,000‑unit order for Avalon A15 Pro miners from a major U.S. client—Canaan’s largest single deal in three years. [31]
- Plans to continue ramping U.S.‑based assembly and deployment, helping customers mitigate tariff risk while bringing rigs closer to key mining hubs. [32]
Energy‑linked mining projects
Canaan is also experimenting with ways to intertwine bitcoin mining with power infrastructure:
- A 4.5‑megawatt contract in Japan to deploy Avalon A1566HA hydro‑cooled mining servers as part of a grid‑balancing project. [33]
- Pilot initiatives in Alberta, Canada, converting stranded natural gas into electricity for mining and high‑density compute workloads, described in The Block’s coverage and on the earnings call. [34]
CEO Nangeng Zhang has repeatedly argued that, at today’s stage of infrastructure build‑out, allocating energy to bitcoin mining generates more immediate cash flow than many AI data‑center projects, even as customers design “AI‑ready” facilities for the future. [35]
Analyst sentiment and what comes next
Following the earnings release and October operational update, several data providers report improving analyst sentiment:
- Financial Modeling Prep notes that the average analyst price target for CAN has risen to $4, up from $2.88 three months ago, reflecting increased confidence in Canaan’s growth trajectory and mining expansion. [36]
- TipRanks and other platforms have highlighted the company’s 50% sequential revenue growth, improving gross margins and large crypto treasury as key drivers behind renewed “buy” ratings, while warning about ongoing volatility. [37]
Management’s own outlook is equally ambitious. On the earnings call, Canaan guided to Q4 2025 revenue of $175–$205 million, implying further double‑digit sequential growth if achieved. [38]
Investors and analysts will be watching several themes in the coming quarters:
- Profitability vs. growth
Can Canaan continue to grow revenue at triple‑digit rates while narrowing net losses and sustaining positive adjusted EBITDA? - Bitcoin price and network difficulty
The company’s fortunes are tightly linked to bitcoin’s price and the cost of hashing power. A prolonged crypto downturn or spike in network difficulty could pressure margins. [39] - Execution on new hardware and projects
Successful mass deployment of the A16 series, Japan grid‑balancing deal and North American energy pilots will be key proof points of Canaan’s broader strategy. [40] - Regulatory and trade headwinds
Tariff regimes, especially between the U.S. and Asia, as well as changing rules on crypto mining in various jurisdictions, remain important wild cards. [41]
Bottom line
For now, markets appear impressed. On a day when bitcoin itself has struggled, Canaan has emerged as one of the strongest movers among crypto‑linked stocks, with a revenue beat that underscores still‑robust demand for mining hardware and services. [42]
Yet the story isn’t risk‑free: net losses, EPS volatility and crypto cyclicality continue to loom large over the investment case. As more coverage from outlets such as Blockchain.news, CoinCentral, Blockonomi, FX Leaders and others shows, Canaan’s latest quarter is best understood as a high‑growth but still‑unproven turnaround rather than a completed comeback. [43]
As always, this article is for information only and does not constitute investment advice. Anyone considering exposure to Canaan or other bitcoin‑mining stocks should carefully evaluate their own risk tolerance and perform independent research.
References
1. www.ainvest.com, 2. www.prnewswire.com, 3. www.prnewswire.com, 4. www.prnewswire.com, 5. www.prnewswire.com, 6. www.prnewswire.com, 7. www.investing.com, 8. www.prnewswire.com, 9. www.investing.com, 10. www.prnewswire.com, 11. www.prnewswire.com, 12. www.prnewswire.com, 13. coincentral.com, 14. www.prnewswire.com, 15. www.prnewswire.com, 16. www.prnewswire.com, 17. www.prnewswire.com, 18. www.investing.com, 19. www.chartmill.com, 20. www.fxleaders.com, 21. coincentral.com, 22. www.fxleaders.com, 23. www.benzinga.com, 24. www.chartmill.com, 25. www.prnewswire.com, 26. www.prnewswire.com, 27. www.theblock.co, 28. www.prnewswire.com, 29. www.prnewswire.com, 30. www.prnewswire.com, 31. www.theblock.co, 32. www.prnewswire.com, 33. www.stocktitan.net, 34. www.theblock.co, 35. coincentral.com, 36. site.financialmodelingprep.com, 37. www.tipranks.com, 38. www.investing.com, 39. www.investing.com, 40. www.prnewswire.com, 41. www.prnewswire.com, 42. www.fxleaders.com, 43. coincentral.com
